BOOK Lent 13 Cybernetic Approach To Project Management

Bogdan Lent
Cybernetic
Approach to
Project
Management
Cybernetic Approach
to Project Management
.
Bogdan Lent
Cybernetic Approach
to Project Management
Bogdan Lent
Bern University of Applied Sciences, Switzerland
Bogdan Lent is also affiliated to:

National Defence University, Warsaw, Poland
University of Technology and Life Sciences, Bydgoszcz, Poland
Kasetsart University, Bangkok, Thailand
ISBN 978-3-642-32503-8 ISBN 978-3-642-32504-5 (eBook)

DOI 10.1007/978-3-642-32504-5
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To someone,
who made my own
My Dream Project
happen
.
Preface
Why This Book?
Addressing the Challenges
In managing various projects, at first small then becoming larger with time, I faced
the deficiencies of common great management guidelines from renowned bodies.
These guidelines and standards missed the point of competence focus, recurrence of
processes, uncertainty and complexity in challenges, decisive human factors in
projects and, most of all, the capacity for intuitive deployment. As DeMarco and
Lister put it: youre like the vaudeville character who loses his keys on a dark street
and looks for them on the adjacent street because, as he explains, The light is better
there (DeMarco and Lister 1999). Being responsible for my small team of project
managers in the company and for hundreds of my students on two continents, and
striving to deliver ever-better managed projects to my customers and stakeholders,
I felt it my duty to search for the keys where they were lost.
Role of Self-management
One of the key recognitions, and in consequence a distinctive feature of this book, is
the impact that the personality of the project manager has on the fate of the project.
I consider the project managers successful self-management in work and life
process to be as important in any endeavour as all the other project management
processes covered by the above-mentioned standards and guidelines.
Focus on Reality and ISO 21500:2012
This book attempts to reflect as closely as possible the project reality, cover the
newly published ISO 21500:2012 standard, benefit from the best contributions
vii
viii Preface
worldwide and provide a concise yet powerful toolbox. It aims to be easy to use and
intuitively supportive for project managers. The evidence so far indicates that these
targets have been successfully met.
What Is New?
With the benefit of my professional experience, I scanned all current (and there are
plenty of them!) contributions in the relevant fields. Very few covered comprehen-
sive project management as I see and experience it daily. As a result, a number of
innovative methods and techniques, highly practical and real-life oriented, have
been conceived. You will not find them elsewhere:
Project management is perceived as a set of processes in accordance with
the ISO 21500:2012. This is not the perception of most popular approaches so
far.
We do work in loops, continuously monitoring our performance and choosing
what action to take. Project management should also be perceived like this:
as a third-order cybernetic system. In contrast to the new ISO standard, the
control process is itself subject to control (and adjusting action if wanted) so it
is treated as a second-order cybernetic system. First-order systems feedback
through the project and the third-order system is the person of the project
manager (Kato and Smalley 2011).
The second-order cybernetics, i.e. the project management processes, never
really finish until the project is closed. The ISO standard admits this and yet
groups project management processes into what resemble the project lifecycle
phases rather than into concurrent processes: initialization, planning, implemen-
tation and closing (and controlling). In this book, all processes are balanced and
treated equally. The project manager sets the priorities and activates them.
A project manager should act, not carry around books of good advice. So, the
simple mnemonic of a clock, the L-Timer, is introduced to facilitate taking the
right action at the right time and to keep all second-order cybernetic system
processes perpetually running.
The human factor, considered decisive for project success, takes a prominent
place in this book. It is treated in processes in same way as the administrative
(formulaic) issues. This allows a better balancing of the efforts of the project
manager and the team.
The 5W1H of Toyota is modified to 6W to better support the project manager in
planning and scheduling.
The activity/role model is considered best for organizing a project team because
it facilitates higher coverage of all relevant project issues.
Culture is taken into consideration when organizing the team, often beyond the
scientific management rules.
The project manager has to participate in procurement processes. The thor-
oughly discussed WTO/GPA rules offer an excellent base for private industry
as well.
Preface ix
Integration means integration of the three Ps: the product, the process and the
people.
Knowledge management in a project is handled along the Nonaka and Takeuchi
conversion model, with evaluation of operational sub-processes at each stage of
the model supporting the project manager in facilitating the right processes.
All projects benefit from a clear project management handbook. However, the
decision as to what is included and what is omitted is mostly arbitrary. Here, the
in comes from the customer demands mapped onto the L-Timer processes.
Each demand is weighted. This secures the comprehensiveness and fulfilment of
all customer demands and dealing with them only once at the right place, and
thus enables the project manager to balance priorities.
Knowledge management is not documentation management! Both of these have
different target recipients and different goals. In this book, they are clearly
treated as separate processes.
Personalities are evaluated along the MBTI (MyersBriggs taxonomy) for their
project role suitability. You may wish to check yourself or your team members
and then consider the informal roles, which impact the performance of both you
and your team. The integral humanism and Max Scheler value systems are
viewed as the best choices for evaluating project manager moral behaviour.
This is very seldom considered in project management and yet is crucial.
Unique and efficient is the required evaluation of candidates for project roles. In
most cases, the demanded capabilities are defined by the company HRM depart-
ment and have weak or no relationship to the real project tasks. In this book, only
the activities relevant to execution of the project management processes are
taken into consideration and mutually weighted. The capabilities required to
perform exactly these activities are named and also weighted against each other.
In the next step, the candidates are evaluated. In this way, a clear picture of how
candidates might perform needed actions is obtained.
There is no project in which conflicts do not occur sooner or later. So, a project
manager is well advised to prepare for this. The creative and useful PACTAR
(Spanish: to negotiate) technique for conflict solution is conceived especially for
dealing with project team conflicts.
Communication is proven to be the key success factor in projects. An innova-
tive communication model based on the transactional analysis of Eric Berne
takes the MBTI personalities and the informal roles mutual relationships into
account.
All stakeholders watch the project manager. The self-management ability of the
project manager impacts the project and the stakeholders perception. A person-
ality entities interrelation chain can be helpful here.
The third-order cybernetics of the project manager gets us back to the project
managers mental model. This, combined with intrinsic motivation, impacts
decision making. Careful and unique selection of techniques can help the project
manager to balance the demands of work and personal life.
x Preface
A well-balanced project manager becomes a leader. The holistic approach of

K. Candis Best matches the cybernetic view and results in the LEAD model:
launch, engage, act and deliver.
Sense-making intelligence distinguishes a leader. A project manager needs IQ to
be an expert, EQ (emotional intelligence) to be a good manager and SQ (sense-
making intelligence) to become a leader, i.e. to handle project uncertainty.
The Motivational Factor Inventory, developed by the Swiss Military Academy at
the renowned Federal Institute of Technology and co-authored by the author of
this book, provides project managers and stakeholders with a powerful instru-
ment for people handling. It is now widely used in several countries on three
continents.
This book is very well organized. All chapters follow the clock, starting from
07:00 Planning & Scheduling: P&S. You will find always a Quick look at the
beginning of each chapter, then a description of the process, followed by
methods and techniques with tools, templates and checklists.
There is a bibliography of over 400, mostly actual, sources. You may wish to
benefit from this inventory of current thinking on the subject.
Isnt it enough to get into?
Who Should Read This Book?
Project Managers
Project managers facing complexity and uncertainty can find the right tool in this
book. The logical and understandable guidelines and checklists cover all events in a
project. The assessment of complexity and uncertainty is personality-based. This
means that everyone can tailor their activities, methods and techniques to their own
project and their own capabilities, yet keep the necessary balance through use of the
weighting system. A specific project management handbook (charta) may be drawn
along the structure of this book (I do this for my projects and have never missed
anything so far).
Supplier and Purchaser Project Managers
The viewpoints of the project manager on the supplier side and the project manager
on the purchasing side are different. The first has to structure the project along the
technological and manufacturing issues, and the latter has to put the business case in
the foreground. However, in most cases, a certain amount of technological integra-
tion with other parts of the project takes place on the purchaser side, so the
challenges are ambiguously technological, organizational and social and go well
beyond the project directorship. These project managers can find particular support
in this book. The issues are addressed and efficiently supported with selected
Preface xi
methods and techniques. A complete chapter is dedicated to integration and another

to WTO procurement rules, which have been adopted by most national legal
systems. The management of planning, controlling, risk, change and a few others
are relevant to both parties.
Experienced Project Managers
Project managers who already have some experience might find the human factor
chapters highly conclusive and address their current needs. The chapters cover
topics such as handling the informal roles in projects and empowering team
members in leadership.
Students
The stepwise explanation of the project management processes and easy navigation
through the material make this a comprehensive and understandable textbook for
those acquiring basic project management knowledge.
Educators
Based on the logic presented in this book and an andragogic educational concept, a
cluster of courses have been developed and are provided at several universities in
Europe and Asia. PowerPoint presentations can be downloaded from the associated
webpage. Educators may also find efficient support in their endeavours.
Female Project Managers
I know several highly successful female project managers and they should not feel
ignored. I admire the Microsoft EMEA Enterprise Services Head of Public Sector
Mrs Angelika Gifford, who lent her personality to open the Part II of the book
dedicated to Human Factor Processes in Project Management. For simplicity of
writing the masculine form is used, yet the intention of the author is to be gender-
independent.
Content of This Book
The Introduction provides well-founded definitions, originating where available

from the ISO 21500:2012 Guidance on Project Management (ISO 21500:2012
2012). Then, the basic concept of cybernetic feedback loop systems is explained
and project management as a third-order cybernetic system described.
xii Preface
The existence of feedback reflects both its necessity and the successful practice of
project management processes.
The structure of second-order cybernetic processes is further explained. To
simplify memorization and application, the analogy to a watch was deliberately
sought and the L-Timer concept created.
Each of the other chapters is dedicated to a single project management process.
They are sequentially ordered, beginning at 07:00 in the morning and closing 23 h
later at 06:00. Every chapter has exactly the same structure:
XX:00 Quick look: What it is about?, Why it is important? What are the steps?
How to ensure that the job is well done?
The process diagram with a feedback loop
XX:10 The goal of this particular process
XX:20 Selected methods for efficient process execution. The processes covered
by ISO 21500:2012 are listed and later elaborated.
XX:30 Selected techniques and tools supporting efficient process execution
XX:40 Documentation of the process
XX:50 Activities (checklists) and deliverables of the process, assigned to the
individual process phases.
XX is the hour associated with a specific process, e.g. 07:00 is linked with
planning and scheduling (as in real life, when we start to plan the day) and 20:00
with human resource management.
An elaborate and vast list of current literature accompanies each chapter. An
index closes the book.
Acknowledgements
This book follows consequently the L-Timer logic of my earlier works, yet
provides a completely new and updated view on each individual issue. All the
new experiences acquired meantime and the very extensive literature survey distin-
guish this book. Yet, I would like to collectively thank all those who made my
earlier books happen. They laid down the fundamentals for further development.
The outstanding support of Wistar Informatik AG in Bern, Managing Director Jorg
Schildknecht and Bea Walti, Member BoD, is gratefully acknowledged.
The incentive to write this new book and the first script came from the
Authorities of the National Defense University in Warsaw. I am grateful for the
patronage of Rector-Commandant Gen. Mjr Prof Dr Boguslaw Pacek.
Very supportive in the process was an English translation of my Polish book by
Monika Pilarska. I enjoyed indirect support of all teams at my company and each
university, yet particular effort was put in by Ms Saisamorn Naklada, who did a
great job of tedious proof-reading of the manuscript, under kind patronage of her
Director, Prof. Dr. Somnuk Keretho from Kasetsart University Institute for Infor-
mation Technology Innovation, KU-INOVA, in Bangkok.
Preface xiii
The index was elaborated by my international students from Warsaw: Olena

Krasiuk, Liudmyla Samoliuk, Halyna Krysyuk, Joanna Smoktunowicz and Piotr
Sosnowski. Pawel Biniarz made a great job of preparing the manuscript.
The editing and fast publishing I owe to the team at Springer Heildelberg,
particularly the Editor, Dr. Prashanth Mahagaonkar, Ms. Barbara Bethke and the
production team, led by Ms Kay Stoll and Ms Vinodhini Kumarasamy.
The person who from the beginning unceasingly supported me and strengthened
my motivation was my father.
To all those named above I express my deepest gratitude.
Bibliography
DeMarco T, Lister T (1999) Peopleware: productive projects and teams, 2nd edn. Dorset House,
New York
ISO 21500:2012 (2012) Guidance on project management, ICS 03.100.40, ISO Geneva
Kato I, Smalley A (2011) Toyota Kaizen method, six steps to improvement. Taylor & Francis,
Philadelphia, 2003
.
Contents
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Why Projects? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
What Is a Project? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
What Is the Project Management? . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Benefits of Projects Management . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Risks Induced by the Project Management . . . . . . . . . . . . . . . . . . . . 5
Project Management Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
The Cybernetics of Project Management . . . . . . . . . . . . . . . . . . . . . . 6
The L-Timer Mental Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
The Benefits and Advantages of the L-Timer . . . . . . . . . . . . . . . 12
The Logic of L-Timer Processes Execution . . . . . . . . . . . . . . . . 12
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Part I Administrative Processes
2 07:00 Planning & Scheduling: P&S . . . . . . . . . . . . . . . . . . . . . . . . 17

Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
07:10 The Goal of Planning and Scheduling . . . . . . . . . . . . . . . . . . . 19
07:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
07:21 Project Goals and Project Objectives . . . . . . . . . . . . . . . . . . 19
07:22 Product and Project Structuring . . . . . . . . . . . . . . . . . . . . . . 24
07:23 Conceptual Models of Project Work Planning . . . . . . . . . . . 28
07:24 Activity and Cost Planning . . . . . . . . . . . . . . . . . . . . . . . . . 29
07:25 Costs/Benefits Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . 36
07:30 Techniques and Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
07:31 Techniques of Project Objectives Identification . . . . . . . . . . 37
07:32 Techniques of Structuring . . . . . . . . . . . . . . . . . . . . . . . . . . 39
07:33 Scheduling Techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
07:34 Project Cost Estimation . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
07:35 Project Business Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
07:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
07:41 Project Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
7:42 Documentation of the Project Results . . . . . . . . . . . . . . . . . . 50
xv
xvi Contents
07:50 Activities and Deliverables of Project Phases . . . . . . . . . . . . . . 50

07:51 Initiation Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
07:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
07:53 Implementation Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
07:54 Closing and Evaluation Phase . . . . . . . . . . . . . . . . . . . . . . . 53
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
3 08:00 Organization Management: OM . . . . . . . . . . . . . . . . . . . . . . 57
Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
08:10 The Goal of Organization Management . . . . . . . . . . . . . . . . . . 58
08:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Organizational Efficiency Versus Effectiveness . . . . . . . . . . . . . . . 58
ISO 21500:2012 Project Organization Management Processes . . . . 59
08:21 Objectives and Stakeholder Identification . . . . . . . . . . . . . . 60
08:22 Process Derived Organization . . . . . . . . . . . . . . . . . . . . . . . 63
08:23 Cultural Adaptation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
08:24 Team Extensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
08:25 Resources Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
08:26 Managing Complex Projects . . . . . . . . . . . . . . . . . . . . . . . . 71
08:27 Organizational Maturity Assessment . . . . . . . . . . . . . . . . . . 73
08:28 Project Coach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
08:31 Techniques of Roles Identification and Creation of
Organizational Structures . . . . . . . . . . . . . . . . . . . . . . . . . . 75
08:32 Project Role Description . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
08:33 Techniques of Analyzing Goal/Solution Impact on Project
Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
08:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
08:42 Documentation of the Project Results . . . . . . . . . . . . . . . . . 80
08:50 Activities and Deliverables of Project Phases . . . . . . . . . . . . . . 81
08:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
4 09:00 Procurement Management: PRM . . . . . . . . . . . . . . . . . . . . . 85
Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
09:10 The Goal of Procurement Management . . . . . . . . . . . . . . . . . . 87
09:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
ISO 21500:2012 Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
09:21 Procurement Process and Contract Management . . . . . . . . . 87
Contents xvii
09:22 Plan Procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

09:23 Select Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
09:24 Administer Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
09:31 Content of Invitation to Participate or Call for Tenders . . . . . 102
09:32 Evaluation Scales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
09:33 Price/Cost Calculation Spectral Schemes . . . . . . . . . . . . . . . 103
09:34 Contract Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
09:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
09:50 Activities and Primary Outputs . . . . . . . . . . . . . . . . . . . . . . . . 106
09:51 Initialization Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
09:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
5 10:00 Earned Value Management: EVM . . . . . . . . . . . . . . . . . . . . 111
Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
10:10 The Goal of Earned Value Management . . . . . . . . . . . . . . . . . . 112
10:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
10:21 Interrelationship Between the Project Scope Objectives . . . . 113
10:22 Analysis of Actual Project State . . . . . . . . . . . . . . . . . . . . . 114
10:23 Forecast of Further Project Progress . . . . . . . . . . . . . . . . . . 116
10:24 Analysis of Discrepancies . . . . . . . . . . . . . . . . . . . . . . . . . . 116
10:25 Precautions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
10:31 Workbench . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
10:32 General Assessment Procedures . . . . . . . . . . . . . . . . . . . . . 118
10:33 Estimation of the Level of Projects Goals Realization . . . . . 123
10:34 Time Control Procedures: Trend Analysis . . . . . . . . . . . . . . 125
10:35 Cost Driven Management . . . . . . . . . . . . . . . . . . . . . . . . . . 130
10:36 Simulation Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
10:37 Decision-Making Process . . . . . . . . . . . . . . . . . . . . . . . . . . 134
10:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
10:42 Documents of the Projects Results . . . . . . . . . . . . . . . . . . . 137
10:50 Activities and Deliverables of EVM . . . . . . . . . . . . . . . . . . . . 137
10:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
xviii Contents
6 11:00 Quality Management: QM . . . . . . . . . . . . . . . . . . . . . . . . . . 143

Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
11:10 The Goal of Quality Management . . . . . . . . . . . . . . . . . . . . . . 145
11:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
11:21 Quality in a Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
11:22 Projects Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
11:23 Responsibilities for Quality Management in Project . . . . . . . 146
11:24 Quality and Results Assessment . . . . . . . . . . . . . . . . . . . . . 148
11:25 Quality Assurance Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
11:26 Method of Quality Control . . . . . . . . . . . . . . . . . . . . . . . . . 150
11:27 Accepted Norms/Standards and Their Directives . . . . . . . . . 150
11:31 Quality of Project Management System . . . . . . . . . . . . . . . . 151
11:32 Quality Management in Project . . . . . . . . . . . . . . . . . . . . . . 153
11:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
11:42 Documentation of Projects Results . . . . . . . . . . . . . . . . . . . 157
11:50 Activities and Deliverables of QM . . . . . . . . . . . . . . . . . . . . . . 157
11:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
7 12:00 Problem Management: PBM . . . . . . . . . . . . . . . . . . . . . . . . 163
Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
12:10 The Goal of Problem Management . . . . . . . . . . . . . . . . . . . . . 164
12:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
12:21 Problem Management Focus . . . . . . . . . . . . . . . . . . . . . . . . 164
12:22 Problem Solving Procedure . . . . . . . . . . . . . . . . . . . . . . . . . 165
12:31 Techniques of Information Acquisition . . . . . . . . . . . . . . . . 169
12:32 Techniques of Searching Solutions . . . . . . . . . . . . . . . . . . . 172
12:33 Solution Assessment and Selection Techniques . . . . . . . . . . 173
12:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
12:42 Documents of the Project Results . . . . . . . . . . . . . . . . . . . . 176
12:50 Activities and Deliverables of Problem Management . . . . . . . . 176
12:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
12:54 Closing & Evaluation Phase . . . . . . . . . . . . . . . . . . . . . . . . 178
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
Contents xix
8 13:00 Risk Management: RM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179

Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
13:10 The Goal of Risk Management . . . . . . . . . . . . . . . . . . . . . . . . 180
13:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
13:21 Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
13:22 Preliminary Risk Analysis, Plan and Risk Detection System
Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
13:23 Probability and Impact Risk Evaluation . . . . . . . . . . . . . . . . 183
13:24 Countermeasures Elaboration . . . . . . . . . . . . . . . . . . . . . . . 185
13:25 Countermeasures Efficiency Assessment Procedure . . . . . . . 186
13:26 Risk Detection System . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
13:27 Risk Handling Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . 187
13:30 Technique and Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
13:31 Risk Identification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
13:32 Assessment of Risk Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
13:33 Assessment of Precautionary Measures . . . . . . . . . . . . . . . . 190
13:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
13:50 Activities and Deliverables of RM . . . . . . . . . . . . . . . . . . . . . . 194
13:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
9 14:00 Change Management: CM . . . . . . . . . . . . . . . . . . . . . . . . . . 197
Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
14:10 The Goal of Change Management . . . . . . . . . . . . . . . . . . . . . . 199
14:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199
14:21 Change Management Organisation . . . . . . . . . . . . . . . . . . . 199
14:22 Change Request Handling . . . . . . . . . . . . . . . . . . . . . . . . . . 199
14:23 Change Request Handling Phases . . . . . . . . . . . . . . . . . . . . 200
14:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
14:42 Documents of Projects Results . . . . . . . . . . . . . . . . . . . . . . 204
14:50 Activities and Deliverables of CM . . . . . . . . . . . . . . . . . . . . . . 204
14:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
xx Contents
10 15:00 Integration Management: IM . . . . . . . . . . . . . . . . . . . . . . . . 207

Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208
15:10 The Goal of Integration Management . . . . . . . . . . . . . . . . . . . . 208
15:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208
15:21 Implementation of Project Results . . . . . . . . . . . . . . . . . . . . 211
15:22 Migration from the Present State to the Target State . . . . . . . 211
15:23 Fall-Back Scenarios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212
15:24 Synopsis of Tests Options . . . . . . . . . . . . . . . . . . . . . . . . . 213
15:25 Operations and Maintenance . . . . . . . . . . . . . . . . . . . . . . . . 213
15:31 Product Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214
15:32 People Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
15:33 Process Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
15:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
15.42 Documents of Project Results . . . . . . . . . . . . . . . . . . . . . . . 217
15:50 Activities and Deliverables of IM . . . . . . . . . . . . . . . . . . . . . . 217
15:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
11 16:00 Knowledge Management: KM . . . . . . . . . . . . . . . . . . . . . . . 223
Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
16:10 The Goal of Knowledge Management . . . . . . . . . . . . . . . . . . . 225
16:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
16:21 What Is Knowledge? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
16:22 Tacit and Explicit Knowledge . . . . . . . . . . . . . . . . . . . . . . . 226
16:23 Tacit Explicit Knowledge Management Model . . . . . . . . . 226
16:24 Structure of Knowledge Management Levels . . . . . . . . . . . . 227
16:25 Operational Knowledge Management . . . . . . . . . . . . . . . . . 227
16:26 Externalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229
16:27 Combination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230
16:28 Internalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
16:29 Socialization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232
16:31 Document Structure and Tagging . . . . . . . . . . . . . . . . . . . . 234
16:32 Data Repository and Retrieval Tools . . . . . . . . . . . . . . . . . . 234
16:33 Knowledge Evaluation Tools . . . . . . . . . . . . . . . . . . . . . . . 235
16:34 Tools Supporting Workflow . . . . . . . . . . . . . . . . . . . . . . . . 235
16:35 Project Management Office . . . . . . . . . . . . . . . . . . . . . . . . . 236
16:36 Project Management Handbook . . . . . . . . . . . . . . . . . . . . . . 236
Contents xxi
16:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239

16:50 Activities and Deliverables of KM . . . . . . . . . . . . . . . . . . . . . . 240
16:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242
12 17:00 Documentation Management: DM . . . . . . . . . . . . . . . . . . . . 243
Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244
17:10 The Goals of Documentation Management . . . . . . . . . . . . . . . . 245
17:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
17:21 Documents Elaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
17:22 Service Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
17:23 Operator Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
17:24 Users Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
17:25 Efficiency and Quality Criteria . . . . . . . . . . . . . . . . . . . . . . 247
17:26 Documentation Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
17:27 Deployment of Document Management System . . . . . . . . . . 248
17:31 Document Structure and Tagging . . . . . . . . . . . . . . . . . . . . 249
17:32 Data Repository and Retrieval Tools . . . . . . . . . . . . . . . . . . 249
17:33 Data Management Systems . . . . . . . . . . . . . . . . . . . . . . . . . 249
17:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
17:41 Project Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
17:50 Activities and Deliverables of DM . . . . . . . . . . . . . . . . . . . . . . 250
17:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
13 18:00 Balanced Scorecard: BSC . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
18:10 The Goal of Balanced Scorecard . . . . . . . . . . . . . . . . . . . . . . . 257
18:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257
18:21 Balanced Scorecard Concept . . . . . . . . . . . . . . . . . . . . . . . . 257
18:22 BSC Balanced Scorecard Evaluation . . . . . . . . . . . . . . . . . . 258
18:23 Kaplan and Norton Balanced Scorecard . . . . . . . . . . . . . . . . 258
18:24 Project Excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260
xxii Contents
18:25 Kaplan and Norton Balanced Scorecard and the Project

Excellence Model Interrelation . . . . . . . . . . . . . . . . . . . . . . 261
18:31 Clients Perspective Techniques and Tools . . . . . . . . . . . . . 262
18:32 Financial Perspective Techniques and Tools . . . . . . . . . . . . 263
18:33 Process Development Perspective Techniques and Tools . . . 264
18:34 Personal Development Perspective Techniques and Tools . . . 264
18:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265
18:42 Documents of Projects Results . . . . . . . . . . . . . . . . . . . . . . 265
18:50 Activities and Deliverables of BSC . . . . . . . . . . . . . . . . . . . . . 265
18:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270
Part II Human Factor
14 20:00 Human Resource Management: HRM . . . . . . . . . . . . . . . . . 273

Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274
20:10 The Goal of Human Resource Management . . . . . . . . . . . . . . . 274
20:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274
20:21 Human Resource, HRM, HR System . . . . . . . . . . . . . . . . . . 274
20:22 Role Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276
20:23 Recruitment and Evaluation . . . . . . . . . . . . . . . . . . . . . . . . 276
20:24 Role Performance Improvement . . . . . . . . . . . . . . . . . . . . . 279
20:25 Formal to Informal Role Adjustment . . . . . . . . . . . . . . . . . . 281
20:26 Role Owner Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . 284
20:31 Target Personal Resource Capacity . . . . . . . . . . . . . . . . . . . 285
20:32 Complete Demanded Profile Definition . . . . . . . . . . . . . . . . 286
20:33 Candidates Evaluation Techniques . . . . . . . . . . . . . . . . . . . 287
20:34 Internal Recruiting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289
20:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289
20:42 Project Results Documents . . . . . . . . . . . . . . . . . . . . . . . . 289
20:50 Activities and Deliverables of HRM . . . . . . . . . . . . . . . . . . . . 290
20:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292
Contents xxiii
15 22:00 Team Management: TM . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295

Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296
22:10 The Goal of Team Management . . . . . . . . . . . . . . . . . . . . . . . 297
22:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297
22:21 Social Networks, Group and Team . . . . . . . . . . . . . . . . . . . 297
22:22 Team Integration Phases . . . . . . . . . . . . . . . . . . . . . . . . . . . 300
22:23 Team Building Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300
22:24 Team Performance Improvement Procedure . . . . . . . . . . . . . 302
22:25 Team Culture Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . 305
22:31 Johari Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307
22:32 Team Integration Measures . . . . . . . . . . . . . . . . . . . . . . . . . 308
22:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310
22:50 Activites and Deliverables of Particular Project Phases . . . . . . . 312
22:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314
16 00:00 Conflict Management: CFM . . . . . . . . . . . . . . . . . . . . . . . . . 315
Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316
00:10 The Goal of Conflict Management . . . . . . . . . . . . . . . . . . . . . . 316
00:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316
00:21 The Definition and Indices of a Conflict . . . . . . . . . . . . . . . 316
00:22 Potential Sources of Conflicts . . . . . . . . . . . . . . . . . . . . . . . 318
00:23 Conflict Impact on Performance . . . . . . . . . . . . . . . . . . . . . 319
00:24 Conflict Solution Approaches . . . . . . . . . . . . . . . . . . . . . . . 320
00:25 Conflict Solving Procedure . . . . . . . . . . . . . . . . . . . . . . . . . 323
00:26 Management of Crisis Situation . . . . . . . . . . . . . . . . . . . . . 326
00:27 Conflicts Prevention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327
00:31 Conflict Prevention Techniques . . . . . . . . . . . . . . . . . . . . . . 328
00:32 PACTAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329
00:33 Feedback in Conflict Management . . . . . . . . . . . . . . . . . . . . 331
00:34 Constructive Dispute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332
00:35 Negotiations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332
00:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 333
00:42 Documents of the Project Results . . . . . . . . . . . . . . . . . . . . 333
xxiv Contents
00:50 Activities and Deliverables of Conflict Management Process . . . 333

00:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335
17 02:00 Communication Management: COM . . . . . . . . . . . . . . . . . . 337
Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338
02:10 The Goal of Communication Management . . . . . . . . . . . . . . . . 338
02:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338
02:21 Project Team Communication Model . . . . . . . . . . . . . . . . . 340
02:22 Dynamic Model of Transaction Analysis . . . . . . . . . . . . . . . 343
02:23 Sender Priorities in Communication Management . . . . . . . . 345
02:24 Sender Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346
02:25 Medium Channel Types . . . . . . . . . . . . . . . . . . . . . . . . . . . 347
02:26 Medium Channel Environment, Cultural Impact . . . . . . . . . 348
02:27 Receiver Transition Model . . . . . . . . . . . . . . . . . . . . . . . . . 348
02:28 Receiver Information Distortions . . . . . . . . . . . . . . . . . . . . . 349
02:29 Special Communication Procedure . . . . . . . . . . . . . . . . . . . 350
02:31 Sender MBTI-Oriented Communication . . . . . . . . . . . . . . . 350
02:32 Visualization Techniques . . . . . . . . . . . . . . . . . . . . . . . . . . 350
02:33 Verbalization Techniques . . . . . . . . . . . . . . . . . . . . . . . . . . 352
02:34 Oral (Spoken) Communication: Controlled Dialog . . . . . . . . 353
02:35 Oral (Spoken) Communication: Negotiations . . . . . . . . . . . . 354
02:36 Oral (Spoken) Communication: Moderation . . . . . . . . . . . . . 354
02:37 Non-Verbal (Body Language) Communication . . . . . . . . . . 356
02:38 Active Listening . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357
02:39 Feedback . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358
02:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 359
02:50 Activities and Deliverables of Particular Project Phases . . . . . . 360
02:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 362
18 04:00 Self Management (Work & Life Balance): SM . . . . . . . . . . . 365
Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366
04:10 The Goal of Self Management (Work & Life Balance) . . . . . . . 366
Contents xxv
04:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366

04:21 Personality Entities Interrelation Chain . . . . . . . . . . . . . . . . 366
04:22 System of Personal Values . . . . . . . . . . . . . . . . . . . . . . . . . 367
04:23 Personal Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369
04:24 Intrinsic Motivation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371
04:25 Personal Immaterial Resources . . . . . . . . . . . . . . . . . . . . . . 372
04:26 Personal Material Resources, Time . . . . . . . . . . . . . . . . . . . 375
04:31 Assessing Own Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377
04:32 Evaluating Own Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377
04:33 Assessment of Own Intrinsic Motivation . . . . . . . . . . . . . . . 378
04:34 Assessment of Personal Psychical Energy Focus . . . . . . . . . 379
04:35 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 383
04:36 Unsatisfactory 10 % Rule . . . . . . . . . . . . . . . . . . . . . . . . . . 385
04:37 Setting the Priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387
04:38 Individual Diurnal Physiological Performance . . . . . . . . . . . 389
04:39 Stress Symptoms and Stressors . . . . . . . . . . . . . . . . . . . . . . 390
04:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391
04:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395
19 06:00 Leadership: L . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399
Quick Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400
06:10 The Goal of Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400
06:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400
06:21 The Leadership Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400
06:22 Launch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402
06:23 Engage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405
06:24 Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407
06:25 Deliver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 411
06:31 Leadership Practices Inventory . . . . . . . . . . . . . . . . . . . . . . 414
06:32 Multifactor Leadership Questionnaire . . . . . . . . . . . . . . . . . 414
06:33 Motivational Factor Inventory . . . . . . . . . . . . . . . . . . . . . . . 415
06:34 ACE Self-Reflection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415
06:35 Mindfulness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416
06:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 419
xxvi Contents

06:52 Planning Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 427
Introduction
1
Why Projects?
Projects as singular endeavours, dedicated to the achievement of a specific goal,

characterize our nature ever since the intelligence began to develop on the earth.
There is no traceable evidence, but the artefacts testify their project nature: the
plants and animals pursue their projects in securing the nutrition; humans realized
the advantage of community development and set numerous projects in various
areas of life. However, the endeavours were focused on goal achievements the
sooner the better, as long as the resources allowed for it. The price was often
tremendous: up to 14,000 lives during the ancient Egypt Great Pyramid construc-
tion, 10 % (Romer 2007) of about 137,000 workforce at this time (Sweeney 2007).
With the advance of competition the price became an issue.
In a typical organization exposed to the competitive output generation, the job
is managed in a department and the results passed to the next one in charge.
The department manager cares about the area of his responsibility and once he
produces the results, the matter is closed to him. The final product might have
to pass several departments and it does not need to be the manufacturing only:
events organization, law formulation, organizational change.
The possibilities of process optimization within a single department have been
today extensively explored. The world wide information and goods availability
reduces to minimum the competitive advantage there. Any further optimization of
the overall costs and performance improvement might be reached only by improved
cooperation between the departments and between the customer or sponsor and
the execution bodies the departments.
The ever increasing easiness of the global logistics led to the worldwide
optimization and the vast geographically distributed operations the departments
are moved where labour is advantageous and closer to the market. The cooperation
is yet even more difficult: across the language and culture borders.
The challenges of management across the department and continents, the granu-
lation and customization of the products and the social recognition that the goal
B. Lent, Cybernetic Approach to Project Management, 1

DOI 10.1007/978-3-642-32504-5_1, # Springer-Verlag Berlin Heidelberg 2013
2 1 Introduction
orientation through increased motivation contributes to the performance increase

(Mary Parket Follet 1920 in Graham 1995/2003), accelerated the modern projects
as the panacea for competitive edge accomplishment (Triebe and Wittstock 2003).
Rollwagen speaks about the project driven economy with a growth projection
in Germany only from 2 % of added value creation in 2007 to 15 % in 2015
and further continuing with the same rate until 2030 (Rollwagen 2010). Project
generate benefits beyond the tangible results; the economy benefits and a new
science of benefits management, which use projects as success story vehicles,
emerges (Zwikael and Smyrk 2011; Bradley 2010; OGC 2006).
What Is a Project?
Over the years projects were defined along the German DIN standard 69901
(DIN 69901:2009-01 2009) stressing the uniqueness of the endeavour. The ISO
21500:2012 brings testimony to authors decade of pioneering clearly identifying
project as a set of processes.
The full definition of a process according to this norm sounds as follows (ISO
21500:2012 2012):
A project consist of a unique set of processes consisting of coordinated and
controlled activities with start and end dates, performed to achieve project
objectives. Achievement of the project objectives requires the provision of
deliverables conforming to specific requirements. A project may be subject to
multiple constraints, as described in 3.11. (several constrains are named in this
chapter of this standard comment of the author).
Although many projects may be similar, each project is unique. Project
differences may occur in the following:
deliverables provided;
stakeholders influencing;
resources used;
constraints;
the way processes are tailored to provide the deliverables.
A project with high level of complexity is characterized by the following
traits (Pfetzing and Rohde 2001):
Is innovative,
Involves several departments of a company/office (concerns many people),
Is interdisciplinary (many partners/specialists),
Involves high level of risk,
Demands substantial outlays (time, costs, financial expenditures),
Has in most cases strategic meaning,
Requires relatively fast realization,
Is unusual, special, specific.
Due to the complexity many projects need special rules and procedures dealing
with the specific problems and tasks.
Project environment is a set of factors (ISO 21500:2012 2012):
Benefits of Projects Management 3
Within the organizational boundary of a project such as e.g. strategy, techno-

logy, maturity, culture,
And outside this boundary (e.g. socio-economics, politics, geography etc.).
Project governance is the framework, by which the organization is directed and
controlled, especially concerned with the areas relevant to the project activities
(ISO 21500:2012 2012).
What Is the Project Management?
Project life cycle is a set of processes which pass several phases between the project
start and project end.
The management of a project is defined according to DIN standard is a set of
measures, techniques, organizations and management tasks enabling the project
realization (DIN 69901:2009-01 2009)
Management, in this context, means steering in the course of a project, of
different, single processes and tasks focused on the achievement of an overall project
goal (Frese 1971). Current ISO standard recognises this by defining the project
management as follows (ISO 21500:2012 2012):
Project management is the application of methods, tools, techniques and competencies to a
project. Project management includes the integration of the various phases of the project
life cycle, as described in 3.10 (Chapter of the standard with general description comment
of the author).
Project management is performed through processes. The processes selected for
performing a project should be aligned in a systemic view. Each phase of the project life
cycle should have specific deliverables. These deliverables should be regularly revewied
during the project to meet the requirements of the sponsor, customers and other
stakeholders.
According to the author of the book, the term project leadership reflects better
than the term project management the necessary orientation of the team stake-
holders on the project goals and on the planned project outputs. In the following
chapters the term Management is used more in the context of the single project
processes. These consist of recursive tasks, thus can be optimised, and thus can
be managed (Chap. 13, 18.00 Balanced Scorecard).
However, as the ISO standard use the same term for process management and
project management, less orthodox approach to the terminology is further adopted.
Benefits of Projects Management
Project management brings benefits already today and offer a suitable tool to handle
the challenges of the future (Rollwagen 2010). The benefits, defined as the flow of
value that arise, when desired outcomes of project are achieved form project, goes
beyond the material outputs (Zwikael and Smyrk 2011).
4 1 Introduction
Benefits of project management have been noted in numerous studies; the example
below concerns projects in the scope of planning and construction of new products
(Platz 1987):
Brandt applied the IDEA (Impact Detection and Assessment) concept to assess
the benefits in today locally and sequentially organized value added creation project
management (Brandt 2004):
Direct impact
Indirect secondary impact on involved processes
Tertian impact on other processes
Following Brandt, Rollwagen and others (e.g. Newell 2005; Kerzner 2009) the
direct impact project management benefits are:
Higher degree of customer requirements fulfilment through improved commu-
nication between the producing team and customer
Influence on the determination of project goal, higher quality of planning
(reduction of mistakes in planning, later amendments and delays of time)
Transparency of the processes of project realization (responsibility and processes gain
on explicitness, become more comprehensible, and as a result are more acceptable)
Effectiveness of decision processes (results of the delayed decisions in the
course of a project are more visible),
Employment effectiveness of staffing the predefined assignment of tasks
Personality development of the staff towards active co-creators.
In secondary area (indirect impact):
Improved quality through better interoperation of departments,
Time earned (reduction of the time of projects realization, better time management),
Better handling of informal processes and networks,
Better control over the security issues.
The tertian impact on the organization leads to:
Economic effectiveness (faster return on investment, savings of costs, lowering
the level of capital engagement) in sales, marketing and services. The turn-over
in certain project is improved by 2.5 % per year, the yearly effective capital costs
return was 25 % (Brandt 2004),
Better anticipation of the non-linear, fractural and de-central value-added crea-
tion (Rollwagen 2010),
Better handling of ever increasing risk endeavours [ditto],
Development of context sensitive management instruments [ditto].
A research was carried out in a company in which about 95 projects were

realized with the annual budget in the amount of about 35 million marks
(17.5 Million Euro).
A year and a half later after the implementation of regular project conduct,
an inventory was made indicating that:
Delays of deadlines were limited by about 60 %,
Savings of costs were achieved by the improvement of quality by about 30 %,
It was possible to reduce costs of production by about 11 % with a high
satisfaction of the project manager (Platz 1987).
Project Management Method 5
Risks Induced by the Project Management
It would be a fairly story, shall the project bring the benefits only. One has to be
conscious of the risks induced by the project management, too. They lay primarily
in the management and human factor areas (Baker 2010; Kerzner 2009; Schelle
2003; Kloppenborg 2009):
Increased number of management positions (usually leading to the higher total
of the salaries)
Project organizations emerge in most cases as parallel world to the functional
organizations causing ambiguity of responsibilities and decision powers
It is an act of balance to make all project and functional line managers enforced
with right powers and cooperating together
Project team members has usually several superiors psychical orientation is
made more difficult
Accountability, mixed decisions and priority conflicts
More difficult proliferation and consistency of organizational polices and
governance
Diverging line functional and project cultures
Low level of knowledge transfer from projects
Critical is the project performance. As the accountability of project-wise
work improves, the measured performance, in particular in intellectual projects,
like e.g. ICT, despite all the measures taken, remain on the level of 3040 %
projects done on time and within the budget (The Standish Group 2010). The
efforts to handle this issue are undertaken among others in this book.
Project Management Method
A method is a sort of standardized steps which according to Jenny may be defined

as follows (Jenny 2001):
Methods are procedures which are planned and justified and are focused on the achievement
of certain goals.
Paris defines a management method in project as follows (Paris 1990):

A management method is defined as a hierarchical network of project management activities.
The network originates from certain mental model. Wysocki identifies six
questions which a project management method shall answer (Wysocki 2011):
What business situation is being addressed?
What do you need to do?
What will you do?
How will you do it?
How will you know you did it?
How well did you do?
6 1 Introduction
We conclude with the following definition adopted in this book:

A project management method is a hierarchical network of project management activities,
based on certain mental model, addressing the Wysockis three W and three H.
Applying certain project management method we use techniques.

Techniques of project management are certain procedures using, supporting and realizing
the chosen methods of project conduct (Jenny 2001).
The Cybernetics of Project Management
Project Management is about control and communication with more or less well
defined goal. Wiener named this field of theory, whether in the machine or in the
animal cybernetics after the Greek steersman () (Wiener 1948/1961).
The general model of cybernetic system with feedback through the environment
is depicted in Fig. 1.1.
This androgynous approach suits well the project management. Humans, aided
with technical means attempt to bring project towards predefined goals. The Envi-
ronment which provides the Feedback is the project, System Mechanics the project
management, Goal the project goal. Wiener tried to express his cybernetic model
with one equation. As it may be possible for logical variables (and still complex,
(Lent 1989)), for multi value variables we obtain complex non-linear relationship
(Wiener 1948/1961; Kaplan 1984/1991). Complex systems do not lock into stable
state but also do not dissolve in chaos. They store the information and exchange it.
Complex systems are spontaneous, adaptive and alive (Waldrop 1992). Usually the
system theories view the cybernetic systems as closed systems with predictable
equilibrium; in early approach through finite number of possible states. However,
the non-linear nature exposes high sensitivity to the initial conditions and multiple
equilibriums. Cybernetics treats the environment as a similar system which is not
the case (each project is different). In effect a finite models of dynamic systems
are limited in their predictability leading to the unavoidable imprecision. Due to
the phenomenon of chance, predictability is bound to the probability and hardly
deterministic in such systems (Stewart 2002). Yet, the short term predictability is
nevertheless feasible (Bousquet 2009), so it makes sense to try to exercise the project
management in any case.
Von Foerster introduced 1974 the second order feedback loop: his observer
(the system mechanics in the Fig. 1.1) is a cybernetic system with own loop itself
(von Foerster 2002). By deploying a number of such second order cybernetic
systems we attempt to view our first order system through the filter of particular
second order sensors as shown in Fig. 1.2. It is a linearization of all other variables
beside those, treated by the individual cybernetic system: the project management
process e.g. P&S for Planning and Scheduling or L for Leadership.
The ISO 21500:2012 groups of processes presented earlier in this chapter
implement the second order cybernetics. The Initialization, Planning,
The Cybernetics of Project Management 7
Fig. 1.1 General

cybernetic model Compare Elaborate
Sensor Actuator
with Goal Decisions
System Mechanics
(Environment) Feedback
Project Management Cybernetic Processes
Sensor Compare Elaborate Actuator
Sensor Compare Elaborate Atuator
Compare Elaborate
Sensor Actuator
with Goal Decisions O
System Mechanics P&S
Project(Environment, Feedback)
Fig. 1.2 Cybernetic model of project management
Implementation and closing are the project management processes, Controlling is

the System Mechanics (Fig. 1.3).
ISO does not provide the Controlling Process Group feedback to the Initiating
Process Group. As this group according to the standard contains at least three
processes, a control feedback (e.g. with the costs of initiating activities) is certain.
Also the very first incentive, which triggers the Initiation of a project comes from
the project environment. Therefore, there is Input drawn from the Project (Environ-
ment) to this group, as well as to all others.
We observe that in this approach, the Controlling Process Group does not
subject to the control mechanism itself, what might not reflect the reality of
project management. The controlling activities, described hereafter in processes
like Earned Value Management, Quality Management or Balanced Scorecard
subject to the same closed loop system mechanics as the other processes of the
project management. Further, the processes groups names suggest their temporal
occurrence in specific project phases only. Nevertheless, the description of the
individual ISO 21500:2012 processes directly or indirectly allows for recurrence
in any phase of the project. Therefore, the model of continuously recurrent pro-
cesses, including the controlling processes, is considered to be better reflecting the
8 1 Introduction
ISO 21500:2012 Process

Several
Compare Elaborate Processes
Sensor Actuator
with Goal Decisions in Each
Initiating Process Group
Input from
System Mechanics
Elaborate Compare all Processes
Actuator Sensor
Decisions with Goal
Controlling Process Group
Project (Environment, Feedback)
Fig. 1.3 Cybernetic model of ISO 21500:2012 project management
Emotions Personal Values, Personal Goals & Personality Traits Traits

&Intrinsic
Motivation
External Mental Decision Decision Execution Final Control
Information Model Preparation taking Tracing & Closing
Own
Experiences
Fig. 1.4 Decision process
nature of the project management and the linearization done in each process during
its execution. This facilitate the understanding of the project management processes
and in consequence their easier handling.
Project Manager himself is the Von Foerster Observer (third level loop) in
this second level project management processes loop (von Foerster 1974). Project
Manager cybernetic loop, where own experiences constitute the System Mechanics,
are shown in Fig. 1.4. It holds true for all decisions taken by project manager in
any project management process.
The details and further considerations concerning the third order cybernetics
may be found in Chap. 18, 04:00 on Self-Management and Chap. 19, 06:00 Dedicated
to the Leadership. This book is built around the second order cybernetics of project
management processes, which jointly act in the first order system with the project
The L-Timer Mental Model 9
itself. The processes are introduced in the following Section and thoroughly
elaborated in the subsequent Chapters.
The L-Timer Mental Model
In search of mental model we focused on easy mnemonic, which should help to

manage the complexity of project management. The time clock with processes
assigned to full hours appeared to be the best choice here. There are 12, 18 and
24 options of process assignment.
An evaluation of project manager activities brought the number of up to 800
single actions with numerous linear and non-linear interconnections (Rufenacht
2005). The cognitive relationships indicated the selection of 18 processes to be the
best option. The heuristic process selection is based on vast experience, literature
study and an analysis of the interactions between the single actions. The results
were verified in several studies and practical deployment in project management
daily operations since 2003 (Rufenacht 2005).
In this approach the recurrence of daily cycle secures the minimal sensitivity of
each process. The mental cycle must not be diurnal: the 24 h may go through within
few minutes of project manager reflections on his activities or stretch over weeks
and may occur in coincidental sequence. The key issue is recurrence itself.
L-Timer system handles 12 administrative processes during the day time
(like working day): each hour one process, in a logical sequence, which base on a
macro linear interrelation; and bihourly six human factor processes (Fig. 1.5).
The Human Factor processes are aligned with relevant administrative processes
with closest links (e.g. 20:00 Human Resource Management is triggered by 8:00
Organization Management). For readability the administrative processes are split into
Tables 1.1 and 1.2. Table 1.3 lists the human factor processes.
Not coincidentally also the L-Timer hands point at 6:30. With the last working
day results closed before at 18:00 (Balanced Scorecard) we recall the project
strategy and with Leadership approach we are ready to start the day with 7:00
Planning & Scheduling.
In the cybernetic systems approach the processes are not bound with specific
project phases like in most recognized standards PMI (PMI 2008), IPMA (Caupin
et al. 2006), but rather continuously work in loop between sensors and actuators.
Obviously we distinguish the project phases, which each process passes. The
Rubicon model of four phases is the model of choice presented hereafter in Chap.
2, 07:00 Planning & Scheduling: P&S.
A special characteristic distinguishing the method based on L-Timer mental
model from other methods is systematic and overall consideration of the processes
of management connected with the so called human factor.
Human factor defines the interrelationships and behavior of all project stakeholders in
certain processes, which interact with administrative project management processes in
cybernetic loops.
10 1 Introduction
Fig. 1.5 L-Timer

cybernetic processes system
Table 1.1 L-Timer administrative processes, part 1

Process Name Objectives
PS Planning and You elaborate, structure and plan the objectives of your project.
Scheduling Project targets are aligned with the overall assignment specified
by the customer and the higher-ranking enterprise strategy and
are guaranteed over the entire duration of the project
OM Organization You define project roles, responsibilities and the form of the
Management organizational structure for the successful realization of your
project
PM Purchase Through formal relationship with suppliers over all phases of
Management the project, you secure the proper procedures and optimal results,
along the formal laws, regulations and enterprise guidelines
EVM Earned Value You control the activities in the project according to the result/
Management deadline/cost stipulations set up in the Planning and Scheduling,
with consideration for unforeseen events in the project
QM Quality You constantly monitor project results, project processes and the
Management other characteristics for compliance with project target stipulations,
project requirements and their implementation planning, and
promptly draw attention to deviations
PBM Problem Together with your team and the applied methodology you
Management master the technical or organizational problems within the cost
and time-frame of your project
A human factor is considered to be a central element of the L-Timer. It is a

decisive factor in the success of project management and the realization of project
tasks. However, today it is still not appreciated enough in practice.
The L-Timer Mental Model 11
Table 1.2 L-Timer administrative processes, part 2

RM Risk Management You minimize the overall risk to your project by permanent,
creative and timely identification of potential risks, their analysis
and the development of suitable countermeasures
CM Change You ascertain, assess and decide on the implementation of
Management proposed changes with a systematic procedure, introduce
them keeping their effects to a minimum to the planned
project handling and have the updated configuration of the
system continuously under your control
IM Integration According to the project plan and schedule you ensure that the
Management elaborated solutions are embedded problem-free into the existing
environment (organization, human resources, applications,
platforms) and that a high level of client and personnel satisfaction
is achieved with its introduction
KM Knowledge You acquire and store process experiences gained in the course
Management of the project for its use in the current project and in other projects
DM Documentation You ensure the documentation and archiving of project results for
Management ease of access during project realization, the successful placing in
operation of the project results, cost-effective operation and full
user satisfaction
BSC Balanced Scorecard You submit the results of your project to an internationally
recognized, integral and comprehensive evaluation with the aim of
making a permanent, positive contribution to the implementation
of enterprise strategy in your company
Table 1.3 L-Timer human factor processes, part 3

HRM Human Resource You select personnel for appointment to the formal and informal
Management project roles best suited to their skills and experience and promote
their personal further development according to the enterprise
strategy
TM Team Management You ensure the best possible efficiency of the complete project
team measured against yielded performances, staff satisfaction
client satisfaction and process improvement
CFM Conflict You promptly identify potentials for conflict in your team and in
Management the overall project environment. You solve conflicts successfully
with suitable methods and technologies
COM Communication You master the effective communication, including that
Management of marketing, devoted to the achievement of project goals,
both in the project and its environment
SM Self Management Your personal satisfaction and performance is very important.
You promote it through effective self-appraisal and dealings
with your own engaged resources
L Leadership You skillfully and consciously control the behavior of your team
members to guarantee the achievement of the project goals
12 1 Introduction
The Benefits and Advantages of the L-Timer
Project management benefits from the L-Timer in the following way:

Project management is viewed as a third order cybernetic system with consequent
feedback loops and clear distinction of relevant levels. This facilitates the under-
standing of the recurrence, the mutual impact and handling of each process.
All processes are considered as second order cybernetic systems, allowing the
control and management in each of them in distinction to ISO 21500:2012,
where control process is in feedback loop and itself removed from the control
feedback. This contributes to better performance of each process.
All ISO 21500:2012 processes are mapped and referred to in the L-Timer
processes. The vocabulary of the standard is used through this book.
Central element of the method is systematic consideration and support of the
management processes referring to a human factor and the development of the
motivation and abilities of project team members. The balanced approach may
be reached this way.
The system of processes is orthogonal: an activity is uniquely treated in only
one process. The goal of this process is clearly formulated.
L-Timer is a method for practitioners created on the basis of the experience.
It focuses on key success factors in a project.
By setting the weights of each activity, L-Timer can be adopted to specific needs
of every company (e.g. special requirements of public procurement companies).
By systematic treatment of each process with regard to the applied methods
and techniques user finds always same class artifacts in each process.
The Logic of L-Timer Processes Execution
As it was already mentioned, the particular L-Timer processes are constantly

repeated in subsequent cycles, in analogy to any daily activity as e.g. everyday
work, everyday lunch etc..
As the day commences so a project begins at 07:00 with P&S Planning and
Scheduling process, which takes the strategy of a company under consideration.
At 18:00 we subsumes the day with the Balanced Scorecard, which originates
from the strategy again. At the end of the project first order cybernetic loop stays
06:00 L Leadership with strategic development of the team. The cycle may start
all over again from the P&S, and the subsequent processes and so on.
The basic advantage of this approach is the execution of the activity in a
proper process at any stage of the project. Change of the scope during the imple-
mentation is treated back by the Planning & Scheduling process as opposed
to waterfall approaches, where this action is executed other way, where the
know-how from Planning & Scheduling might be missing.
The cybernetic loops may occur in any frequency: daily, irregularly, and spora-
dically. The key is their complete execution and recurrence.
Bibliography 13
Bibliography
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gic collaboration. J. Ross Publishing, Ford Lauderdale
Bousquet A (2009) Scientific way of warfare: order and chaos on the battle-fields of modernity.
Columbia University Press, New York
Bradley G (2010) Benefit realisation management, a practical guide to achieving benefits. Gower
Publishing, Farnham
Brandt T (2004) Erfolgsmessung im Projektmanagement, Wirkung und Nutzen sicher beurteilen.
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Caupin G, Knoepfel H, Koch G, Pannenbacker K, Perez-Polo F, Seabury Chr (2006) ICB IPMA
competence Baseline, Version 3.0, IPMA Nijkert, NL
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fur Normung e.V., Berlin
Frese E (1971) Ziele als Fuhrungsinstrumente Kritische Anmerkungen zum Management by
Objectives. Zeitschrift fur Organisation Vol. 40. Wiesbaden
Graham P (1995/2003) Mary Parker Follet prophet of management, a celebration of writings from
the 1920s. Beard Books, Boston
Jenny B (2001) Projektmanagement in der Wirtschaftsinfor-matik, 5. Auflage, Steinhausen/Zurich
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sity Press, Stanford
Kerzner H (2009) Project management, a system approach to planning, scheduling and controlling.
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Mason
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Pfetzing K, Rohde A (2001) Ganzheitliches Projektmanagement, 1. Auflage. Zurich
Platz J (1987) Projektmanagement erfolgreich einfuhren. ZFO, Zeitschrift fur Fuhrung und
Organisation 56(4):217226, Schaffer-Poeschel Verlag, Stuttgart
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Arndt B, Thomas RL, Becker L (eds) Handbuch project management office, mit PMO zum
strategischen Management der Projektlandschaft. Symposion, Dusseldorf
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Rufenacht U (2005) Projektschlussbeurteilung P05/ProCur (Final report on project P05/ProCur),
internal Report Swiss Ministry of Finances, Bern
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14 1 Introduction
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Wysocki R (2011) Executive guide to project management: organizational processes and practices
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Zwikael O, Smyrk J (2011) Project management for the creation of organizational value. Springer,
London
Part I
Administrative Processes
The following processes implements the second order cybernetic systems in

administrative area of project management.
07:00 Planning & Scheduling: P&S
08:00 Organization Management OM
09:00 Purchase Management PRM
10:00 Earned Value Management EVM
11:00 Quality Management QM
12:00 Problem Management PM
13:00 Risk Management RM
14:00 Change Management CM
15:00 Integration Management IM
16:00 Knowledge Management KM
17:00 Documentation Management DM
18:00 Balanced Scorecard BSC
07:00 Planning & Scheduling: P&S
2
Quick Look
What Is It?
Planning & Scheduling P&S is a basic process where the project is built and
maintained. Project results are atomized down to realizable units (Work breakdown
structure WBS), which in turn are set into reasonable project activities. Duration of
each activity is estimated and scheduled. Subsequently the costs and cost/benefits
are evaluated.
Who Does It?
Planers and controllers are well suited to lead, yet project manager shall be
involved, as he later bears the responsibility for the project overall results.
Why Is It Important?
P&S process is a cornerstone of any project. The WBS determines the usability of
the project results. Project structure and time schedule determine the overall costs.
Cost/benefits relationship decide about the project fate.
What Are the Steps?
Evaluate the project goals in view of customer expectations and your company
strategy. Set the project objectives and quantify the target values. Than break down
the planned output (product objective) and simultaneously structure your project.
Evaluate time and cost, verify the profitability. If necessary repeat these steps.
Initiate few other processes if needed. Repeat this process periodically.
What Is the Work?
Project goals are general, project objectives, despite all efforts, always not enough
specific. In a tedious work and several iterations you break down the project
product, draft the project structure. You proceed with resources planning and
time schedule getting the first financial project evaluation to learn, that yet another
loop: WBS-Project structure-Resources-Time-Costs is needed and so on until all
stake-holders accept the results.
How Do I Ensure That I Have Done It Right?
Choose the WBS and scheduling methods and techniques best matching the
characteristics of the project. Plan sufficient resources for all project needed

18 2 07:00 Planning & Scheduling: P&S
PM, PBM, EVM, CM,
07:00
Pending process
improvements
and tasks
Goals & Objectives

Project Goal
Setting
and Objectives
see 07:20
Product & Project

Product and Project
Structuring
Structuring
see 07:21
Project Time and Time & Cost Planning

Cost Planning see 07:23
Project Cost/Benefits
Cost/Benefits Evaluation Procedure
Evaluation see 07:24
Yes
Problems? PBM
No
Yes
Change Requests? CM
No
Yes
Lessons learned? KM
No
Fig. 2.1 The Planning & Scheduling process
activities: project output (product), tests, integration, human factor. Be honest and
do always the cost/benefit evaluation it pays back in critical project phases.
Process
Project goals and objectives drive product and project structuring, followed by time
and cost estimation and cost/benefit evaluation. Problems, change requests and
lessons learned initiate proper other processes. Planning& Scheduling process shall
be periodically repeated with pending issues treatment; it may be initiated by few
other processes, too. Figure 2.1 depicts this process.
07:20 Methods 19
07:10 The Goal of Planning and Scheduling
The process of Planning and Scheduling P&S elaborates the answers and maintains
their actuality regarding the six W: What shall be done?, Why shall it be done?,
Who is going to do it?, When? Where will that be done?, and Which way
(Requirements, Constrains and Methods) shall it happen?
07:20 Methods
The original 5 W, later extended to 5W1H, were conceived by Toyota in strive for
better problem management (Kato and Smalley 2011). The H meaning How we
further replace here with the sixth W staying for the sixth question Which
(way)?:
Why is it necessary?
What is its purpose?
Where should it be done?
When should it be done?
Who is best qualified to do it?
Which is the best way to do it?
The answers to each of the six W are not orthogonal: certain activities provide
simultaneously answers to multiple Ws; a comprehensive approach to each W
calls for several different actions. Therefore, the sequence of operation in the P&S
process is chosen as a backbone of the following considerations, delivering implic-
itly the answers to the relevant W.
Planning and Scheduling in the initialization phase develops basic outline of the
project called in ISO 21500 standard the Project Charter, what corresponds to the
ISO 21500 processes: 4.3.2. Develop Project Charter. This document is in the
planning phase refined to a list of project plans (4.3.3. Develop Project Plans)
with several other processes covered (ISO 21500:2012 2012).
4.3.11.Define Scope
4.3.12.Create WBS
4.3.13.Define Activities
4.3.16.Estimate Resources
4.3.21.Sequence Activites
4.3.22.Estimate Activity Durations
4.3.23.Develop Schedule
4.3.25.Estimate Costs
4.3.26.Develop Budget
4.3.32.Plan Quality (the initial demands)
4.3.35.Plan Procurement
07:21 Project Goals and Project Objectives
There is certain confusion in literature concerning the terms: goal, objective, target,
scope, and result in reference to the project course. For the purpose of this book we
apply the definitions given in Table 2.1.
Table 2.1 Terms used in project planning and scheduling

Term Description Example
Project Focuses on Why? and to some extend Project shall contribute to improvement
goals on What? It results from opportunity in people communication
identification (ISO 21500:2012 2012).
Indicate rather a direction of expected
results, tends to be general and
unspecific. Should not be confused with
the process goal
Project Specific SMART implementation of the With a budget of 20 millions the city of
objectives project goals. Addresses What?, 100,000 inhabitants shall get within
Where?, When, and Which? and 2 years complete coverage with 10 MB
indirectly Who? data network
Project Project deliverables, product, Output 150 miles of Cat7 cabling and 120 active
results given by the project scope and project components with mean grade of service
quality or target conditions of the at the level not less than 98 %
endeavour (DIN 69901:2009-01 2009).
Addresses What? and Which?
Project Deliverables, requirements and 150 miles of cable and 120 active
scope boundaries of the project objective components
Output bound to the quality (see Fig.
2.2 and ISO 21500:2012 2012).
Addresses What?
Objectives Quantified objectives: output, time and The above project results within a budget
target costs. Addresses: What?, When, of 20 millions and 2 years completion
values Where?, Which?, and indirectly time
Who?
The particular target values can be defined independently (Grau 1999). How-
ever, there is certain interdependence between the target values; by changing one of
them inevitable is the change in one or other two. When the project duration is cut,
either more expensive will be its realization or output has to be redimensioned.
This interdependence called iron triangle was conceived 1969 according to Weaver
by Dr Martin Barnes in a course he developed called Time and Money in Contract
Control and until the third edition was an iron component of the PMBOK (PMI
2013a). The original source of Barnes iron triangle could not be found. Indirect
references are given a. o. by Weaver and by Lock (Weaver 2007; Lock 2007). As
few other sources confirm 1969 as the origin date, Lock attributes it to 1980s. The
reason may be a migration, done by the author himself from Quality in 1969 as a
third objective beside time and cost, through Performance to final Output.
Figure 2.2 shows the interrelations between all terms listed in Table 2.1.
Grau classifies the Output objectives and target values as the category of project
deliverables and time and cost rather as process describing category (Grau 1999).
This matches well the later in Chap. 13, 18:00 Balanced Scorecard BSC presented
twofold project evaluation scheme of Project Excellence (Project Excellence 2013).
Beside the main target of defining the project deliverables, the objectives fulfill
additional functions in project (Grau 1999):
07:20 Methods 21
Fig. 2.2 The

interrelationship between the
project goals, objectives and Goals
target values
Objectives
Output = Scope+Quality
Target Values
Time Cost
Table 2.2 SMART project objectives

Abbreviation Description Example
S Specific With a budget of 20 millions the city of 100,000 inhabitants shall get
within 2 years complete coverage with 10 MB data network.
M Measurable Network: 10 MB data network
Budget 20 millions
Coverage: the whole city of 100,000 inhabitants duration: 2 years
A Attainable Budget is secured by the city, technology is available, provider has
technical capabilities to deliver, no obstacles from the inhabitants are
expected
R Relevant Project objectives contribute towards project goals of improved
people communication within the area with a positive impact on local
economy
T Time- Project results are to be delivered within 2 years completion time
bound
Controlling
Pointing activities direction
Communicative
Coordinative
Selective
Proper project objectives are SMART. From a vast number of various
combinations of meaning of this acronym, author tends to align with Philips and
Gordon as presented in Table 2.2 (Phillips 2010; Gordon 2003).
Pfetzing and Rohde suggest further that the objectives shall be compliant to the
strategy of major stake-holders (project sponsor and client), non-redundant, free of
contradictions and neutral with regards to the possible solution (Pfetzing and Rohde
2001).
Compliance with to the stakeholders strategy and opportunities identification
(ISO 21500:2012 2012) suggests defining the objectives in alignment with the four
evaluation strategies of Balanced Scorecard BSC (see Chap. 13, 18.00 Balanced
Scorecard):
Clients,
Team,
Processes,
Companys development (among other things these are economic goals).
Lock extended the iron triangle of Barnes with component people in the
middle between all other objectives making the triangle based objectives and target
values compatible with the BSC evaluation. (Lock 2007).
Finally there are several standards and other restrictions supporting the success-
ful objectives elaboration:
Company relevant standards
ISO 9001:2008 Quality Management Systems - Requirements (ISO
9001:2008 2008)
Technical standards
ISO 10006:2003: Quality Management Systems - Guidelines for Quality
Management in Projects (ISO 10006:2003 2003)
ISO 10007:2003: Quality Management Systems - Guidelines for Configura-
tion Management (ISO 10007:2003 2003)
ISO 21500:2012: Guidance on Project Management (ISO 21500:2012 2012)
ISO 27003:2010 (BS/ISO/IEC) Information technology. Security techniques.
Information security management system implementation guidance (ISO
27003:2010 2010)
ISO/DIS 31000:2009: Risk Management, Principles and Guidelines (ISO
31000:2009 2009)
DIN 69900:2009-01: Projektmanagement Netzplantechnik; Beschrei-
bungen und Begriffe (DIN 69900:2009-01 2009)
DIN 69901:2009: Projektwirtschaft, Projektmanagement, Begriffe (DIN
69901:2009 2009)
DIN 69901:2009-01: Projektmanagement - Projektmanagementsysteme
(DIN 69901:2009-01 2009)
Project management guidelines
IPMA Competence Baseline (ICB) (Caupin et al. 2006)
A Guide to the Project Management Body of Knowledge: PMBOK Guide
(PMI 2013a)
Standards concerning environment
ISO 14001:2004: Environmental Management Systems Requirements with
Guidance for Use (ISO 14001:2004 2004)
Design and Exploitation standards
CMMI: Capability Maturity Model1 Integration, e.g. CMMI for Develop-
ment, V.1.3 (CMMI 2010/2013)
ITIL (ISO/IEC 20000-1:2011): Information Technology-Service management
Part 1: Service management system requirements (ISO/IEC 20000-1:2011 2011)
Ethical recommendations
EU Ethikcharta (EU 2013)
PMI Ethics codex (PMI 2013)
To the particular Which? may belong e.g. demand of the client to present the
project deliverables in a particular form etc.
07:20 Methods 23
Table 2.3 Objectives elaboration procedure

Step Action
1 Search of possible project objectives
Teams brainstorming
Analysis of the needs of people who are vital for the project
2 Structuring of the elaborated objectives
Determination of a catalogue of goals solution neutral
Separation of objectives (what?) and restrictions/framework (which?) conditions
Verification of the congruence with the project goals
Elimination of discrepancies concerning the objectives
Elimination of redundancy
Searching for proper strategic terms
Verification and eventual extension of strategic terms
3 Operationalization of the objectives
Elaboration of the WBS and project structuring procedures
4 Quantification and qualification of the objectives
Elaboration of the target values
Qualification of the must and nice to have objectives
5 Elaboration of the catalogue of objectives
Evaluation of the results and verification in relation to the project goals
Prioritization and fine tuning of the objectives
Time schedule elaboration (When?)
6 Documentation
Final summary of all results and if needed their justification
7 Verification of the achieved results
Retrospection on project goals and objectives, possible target values and assurance of all
project team members acceptance
City network 10MB
Active Components Cabling Power supply
Patches Short distance cable Optical cables
Fig. 2.3 Example of Work Breakdown Structure (WBS)
Whether the objectives are given by the client and/or sponsor in a project charter
or only goals are defined and project team has to elaborate the objectives, it is in
each case advisable to go with team through the project objectives. Pfetzing and
Rohde suggest the procedure as shown in Table 2.3 (Pfetzing and Rohde 2001).
Project City Network
Planning Installations Operations
South North
Network
Management
Fig. 2.4 Example of a project structure
07:22 Product and Project Structuring
Product Structure
Structuring of Barnes Output called hereafter Product and structuring project
allow to divide the whole project in smaller tasks and activities with reasonable and
manageable interdependencies (Caupin et al. 2006).
Product Structure reflects the technically determined interdependences between
the identifiable singular components (see Fig. 2.3). The tree structure is better known
as Work Breakdown Structure, WBS and the process which elaborates it is Process
4.2.12 Create Work Breakdonw Structure (ISO 21500:2012 2012). Yet the notion of
Work implies certain misleading concepts of task breakdown and this is the
subject of project structuring. The criteria of structuring in both cases are different:
product structure is determined by technical aspects, while project structure by
organizational and capability based approach. Yet for the compliance reasons with
ISO 21500 Work Breakdown Structure (WBS) is hereafter further used.
Project Structure
Project Structure is defined according to DIN 69901 standard as the overall of
relevant relations between project elements (relations in organization as well as in
project processes). Here ISO 21500 clearly names this process 4.3.13 Define
activities (ISO 21500:2012 2012). An example related to the above WBS is given
in Fig. 2.4.
Project Structure Plan PSP

According to DIN 69901 Standard the Project Structure Plan (PSP) is the descrip-
tion of a project with a hierarchical layered presentation of project activities (DIN
69900:2009-01 2009). In PSP we address What?, Who?, When?, Where?
and indirectly Which?. Each task includes keywords of description, indication of
attained results, eventually objectives, and the contents such as deadlines, duration,
necessary resources, preliminary works and costs (Lewis 2011; Caupin et al. 2006).
07:20 Methods 25
Anticipated final
product (Output)
Taking into considerations the strategy of a company, standards,
directives and
other framework conditions
Milestones Main project tasks
1 2 A B
Detailed milestones Main project tasks
11 21 AA BA
12 23 AB BB
22 AC BC
Single
Packages of tasks
results
Division of results Division of activities

(WBS) Particular stages (projects structure)
Fig. 2.5 Example of the recommended project structuring procedure
PSP may be either product (derived from Example Fig. 2.3) or project (derived
from Example Fig. 2.4) oriented. Combinations of both leads in most cases to
competence frictions and process deficiencies and therefore is not recommended.
The Goal of Project Structure Planning

In the PSP activities are hierarchically ordered i.e. the sum of lower level activities
compose to the upper level group of activities, which may in turn build together
with other group of activities another level of aggregated work and so on. ISO
21500 name this process 4.3.21 Sequence Activities.
Depending on the needs, the aggregated activities are divided back into single
activities which allow to estimate time and costs of single activity in a good and
unambiguous way (Lewis 2011). The critical path (longest time chain) helps to
assess the project total time CPM, (Kelley and Walker 1959). The process is 4.3.22
Estimate Activity Duration acc. to ISO 21500.
The level down to which the structures have to be broken down is relative and
depends on experience and knowledge of the team in charge of the structuring. It is
advisable to go iteratively and in parallel with structuring of the product and of the
project down to the level, where the heuristically estimation of the complexity,
effort, methods and time needed may be done. Products structuring allows to define
milestones, when specific component should be done. Figure 2.5 illustrates this case.
Table 2.4 Rules for PSP development

Pragmatic structuring The division of work is done in a heuristic way. Tasks are
organized according to certain hierarchy and divided into smaller
units. We should also take into consideration project goals,
framework conditions and the experiences of project participants
Taking into consideration Tasks packages must be determined in such a way that it is
personal resources possible to assign them to certain people or teams. We make such
a choice of employees that we are able to use their abilities and
professionalism in order to guarantee proper task completion
Proper level of expansion Tasks should be divided on the basis of their complexity and
innovative character of a project. In chase of innovative and
groundbreaking projects it is advisable to present the issue in
more details since it allows to keep flexibility during the project
realization
Hierarchical analysis and The PSP shall be actualized concurrently with the following
synthesis of elements actions:
Hierarchical analysis of tasks (goal, main tasks, packages of
tasks),
The synthesis of not systematized elements (tasks, restrictions,
vital information) together with the results of hierarchical
analysis into one, possibly cohesive, structure which result of
hierarchical analysis
Using the technique of The creativeness and cohesion of team work are efficiently
visualization supported with techniques of visualization
Internal cohesion A project should be divided in such a way so as the groups in a
project and partial tasks do not have too many common points
with external to project structures
Completeness of the tasks In planning we should take into consideration as early as possible
a complete list of tasks, since it has influence on the course of
other connected undertakings
Task objectives We should define objectives of each particular tasks. The
objectives shall fulfill SMART criteria
Periodical PSP verification The PSP shall be periodically (e.g. with L-Timer trigger)
verified and updated
Preparation of the Plan of Project Structure

Preparation of the PSP takes place during projects realization. Preparation of the
first plan of project structure takes place already in the phase of the first ideas to take
up a project (Project charter). The project structure plan is continuously updated
according to the actual requirements in each phase of a project. According to ISO
21500 it is the part of the Process 4.3.3. Develop Project Plans ((ISO 21500:2012
2012). The effectiveness of work, reduction to a minimum of the inter-task
dependencies and processes optimization are here the criteria.
Table 2.4 presents several practical rules which should be taken into consider-
ation while preparing the PSP, modified and extended from (Pfetzing and Rohde
2001).
07:20 Methods 27
Project inception
Risk mangement Goals and objectives
1. Draft of the Objectives

product (Output) catalogue
2. Preparation of
Product structure
production process
3. Evaluation of needed
resources
4. Determination of
quality
5. Analysis / planning
of risk mitigation
No Risk
acceptable?
6. Elaboration of the PSP

Yes
Risks catalogue
7.Elaboration of the product Product structure
and project structures Plan PSP
Cost and resources Project plan, tasks

Tasks packages estimation schedule and
deadlines
Fig. 2.6 Project structuring
Project Structuring
Project structuring is carried out in five stages. In the first stage tasks are planned
according their functional interdependence. The first PSP is created. In the second
phase (Chap. 3, 08:00 OM Process) we examine the following:
Human resources,
Necessary tools,
Technical conditions,
and their impact on the first stage PSP (Process 4.3.16 Estimate Resources acc. to
ISO21500). The third stage (Chap. 6, 11:00 Quality Management QM) focuses on
quality (Initiation of the Process 4.3.32 Plan Quality acc. to ISO21500), and the
fourth one on the risk mitigation (Chap. 8, 13:00 Risk Management RM, Processes
4.3.28 Identify Risks and 4.3.29 Assess Risks) and again their impact on the PSP. In
the fifth, i.e. the last stage we verify if the final product, both project and PSP
structures if they mutually match each other (Process 4.3.3 Develop Project Plans
acc. to ISO21500). All stages are presented jointly in Fig. 2.6.
07:23 Conceptual Models of Project Work Planning
4-Phases-Meta-Model/Rubicon Model
Several conceptual models of project work planning are currently in use. Their
common denominator is the meta-model of four phases of product elaboration,
known in the psychology as Rubicon Model (Cadle and Yeates 2008; Heinz
Heckhausen and Gollwitzer 1987):
Initiation and consideration phase,
Planning phase,
Implementation phase,
Closing and evaluation phase
Each project phase is clearly separated from the rest of project phases and is
characterized by (Caupin et al. 2006):
Planned time of realization,
Detailed list of activities of a given phase,
Detailed list of results of a given phase.
The only and major differentiation between all models is:
The granularity of the meta-model
Level at which the recurrence take place
Number of iterations.
Selection of the appropriate conceptual model is project objective dependent:
different for construction work and different for software development. Common
models are evaluated hereafter.
Veni, Vidi, Vici: I came, I saw, I won

Gaius lulius Cesar (10044 B.C.)
#bpk/Antikensammlung, Berlin, SMB/
Jurgen Liepe
In the year 49 B.C. Gaius lulius Cesar while
being in the Province of Cisalpina (todays
more or less northern Italy) was confronted
with the unacceptable to him dictator
Pompeius in Rome. The River Rubicon
was a natural border between Cisalpina and
those days Italy. Gaius lulius Cesar was
aware, that after crossing Rubicon there
was no way to return and that the home
war became inevitable. So he collected his legions and asked each soldier if
it is worth for him to cross the river Rubicon. This objective consideration left
all options open. The decision generated deep intrinsic motivation, needed to
succeed. The initiation and consideration phase (later named just the Initiation
only) was closed with famous Alea iacta est (the die is cast). The subsequent
planning phase was subjective: all wanted to cross the Rubicon and conquer
07:20 Methods 29
Rome; the question was only how?, which way is the best one? This
motivation build-up, based on objective considerations, against subjective
success-oriented planning is the key differentiating factor and makes basic
difference between the Initiation and Planning Phases. With the crossing of
Rubicon the Implementation Phase begun. . ... And ever since than the ruler of
Roman Emporium bear the title of Cesar. . ..
Waterfall Model
Most common model of project work planning is a sequential waterfall model
(Boehm 1981). In this model the phases do not necessary close before the next one
starts; they may overlapped as shown in Fig. 2.7. As in the case of HERMES 2003
and HERMES 2005, the planning phase is split into the pre-analysis and concept
phases (HERMES 2003 2003 and HERMES 2005 2005) (Table 2.5).
V Model
V model (see Fig. 2.8) allows to separate the production from control activities
(Jenny 2001; Cadle and Yeates 2008) (Table 2.6):
Agile Model
Despite all the efforts in elaborating best possible business input, the indeterminacy
in demanded features and subsequent realization led to number of agile models,
targeted in better consistence of business requirements and project (useful)
results (Beck et al. 2001/2013; Jenny 2001; Cadle and Yeates 2008; Pressman
2010). The numerous iterations are in authors view still better represented by the
spiral model, which reflects the fact of inclusion of previous results, rather than e.g.
SCRUM models, which awake an impression, that only the actual sprint is
elaborated and tested. Table 2.7 and Fig. 2.9 give an overview of agile model
approach.
Activity/Role Model
In a activity/role model all processes which occur in a project lifecycle are consid-
ered in the project structure and assigned to specific roles. The planning and
realization phases in this model are not necessary strictly separated (see Fig. 2.10,
Table 2.8). Depending on the project size one person (team member) can care about
one or multiple roles.
07:24 Activity and Cost Planning
Work Breakdown Structure and project structuring delivered logically and unam-
biguously interdependent modules and activities (see section 07:22 Product and
Product Structuring). To develop the activities schedule (4.3.23. Develop
Initialization phase
Pre-analysis
Concept
Realization
Implementation
Fig. 2.7 Waterfall model
Table 2.5 Characteristics of waterfall model

Granularity Single chain of phases
Level of recurrence Highest level, realization in stages often practiced
Number of iterations None on the highest level, few minor iteration in realization phase
sometimes practiced
Initiation Phase Initialization
Planning Pre-analysis and concept
Implementation Phase Realization and Implementation Phases
Closing and -
Evaluation Phase
Characteristics Simple, clear,
Sequential execution of the phases,
Each phase is completed before the commencement of the next phase,
There are certain results for each phase, the phases complement one
another,
Lack of correlation between the phases,
Static,
Does not take into consideration the changing goals and external
conditions,
Changes in the course of project realization have negative touch
Application to HERMES 2003 and HERMES 2005 Project Management Method,
construction projects, IT projects etc
Risks Faulty results of one phase can lead to further mistakes of the
subsequent phase,
Cost consuming management of change process, hindered changes
implementation,
Late availability of the results impacts the userss acceptance
Schedule Process acc. to ISO 21500) and to assess the critical path (longest time
chain) the following questions shall be answered (Jenny 2001):
Which activities can be realized independently regardless of the other?
Results of activities are necessary for other activities?
Which activities take place directly after each other?
Which activities can be grouped?
Which activities can be incorporated into certain sub-projects?
07:20 Methods 31
Business Case Test scenario (TS BC)

Analysis Test cases
Terms of TS ToR
Implementation Validation
Reference
Systems TS Specs Verification
specification System test
System TS Int.
Integration test
Component
Module TS Mod.
Single test
realization
time
Fig. 2.8 V model
The resulting modified Project Structure Plan PSP can be further modified
according to the selected criteria (also Pfetzing and Rohde 2001). Few most
commonly used are:
Scheduling of Activities
Criterion of deadlines. The critical path (CPM) is optimised to meet the
deadlines. Other tasks are scheduled to support the deadlines. Costs and
ressources play secondary role
Criterion of costs minimization. The costs of resources and overall investment is
evaluated and optimized to deliver the project product at minimal cost
Criterion of optimal deployment of the available resources. Either material or
personal resources are balanced against the project needs and the activities are
scheduled accordingly
Time Schedule Elaboration

Now the resulting PSP is again evaluated and with the use of some techniques
presented hereafter in section 07:30 Techniques and Tools, final planning can be
approached (see 4.3.23. Develop Schedule Process acc. to ISO 21500) (Klose 2002;
Lewis 2011).
Elaborate the sequential list of tasks and tasks packages
Assign the time necessary for the realization of each task and tasks package.
Plan the independent tasks in parallel as far as it is feasible from the resources
point of view
If you use other than task/role models, add global task of project management
with 1020 % personal/cost and time resources evenly distributed in a project
Set the deadlines in the planning
Draft first sequences of the tasks and packages and verify if the partial results
meet the deadlines
Add 1015 % time reserve to reach each deadline
Table 2.6 Characteristics of V model

Granularity Single chain of phases
Level of recurrence On system component level and below several iterations to reach
positive tests results practiced
Number of iterations None on the highest level, increased number of iterations with the
decreasing level practiced
Initiation Phase Business case analysis
Planning Terms of reference, system specifications
Implementation System components and modules specification, elaboration, testing
Closing and -
Evaluation Phase
Characteristics Sequential, rather static down to system level, multiple iterations on
sub-system and module level,
The product is structured under criterion of the verification and
validation testing,
The requirements are paired with test criteria
The knowledge gained on lower levels supports the efficiency on
higher level testing
Application Systems manufacturing,
Volume production,
High reliability systems,
V-Modell/XT (BBI 2013)
Risks Late detection of system design errors,
Laborious corrections of system errors
Reluctance in improvements
Dailys (24 hours iteration)

Planning
Initialisation
Sprint
Implementation
Realisation
Fig. 2.9 Agile model
If necessary redesign the PSP to meet the deadlines with necessary reserves or
negotiate new deadlines
Set the redesign plan and schedule the tasks
Introduce milestones to measure project progress
Figure 2.11 drafts this scheme.
Planning According to Milestones in Project Realization

Milestone is an event, usually marking the achievement of major result in project,
after specified period of time, specified resources used, having a significant
07:20 Methods 33
Table 2.7 Characteristics of agile model

Granularity Very high, up to all meta model phases in 1 day
Level of recurrence Very low, down to single features, what is realizable in 1 day
Number of iterations Very high, 30 for each 30 days sprint, numerous sprints in a project
Initiation Phase Product backlog elaboration
Planning Sprint backlog extended by the team with necessary support features
Implementation Sprint/dailys initialization, planning, realization, implementation
Closing and Evaluation -
Phase
Characteristics Product made gradually in multiple versions,
Short term planning of the next sprint/current day activities,
Every iteration is basically carried out in four phases,
The risk mitigation management occurs in short dailys loop
Highly flexible delivers useful results contrary to the initially
planned results,
Knowledge from the predecessor daily used in the following cycle,
Changes are immediately implemented.
Application Software development,
Projects with numerous changes,
Groundbreaking, innovative projects,
XP, ASD, DSDM, SCRUM, Crystal, FDD, AM (Pressman 2010)
Risk Still higher requirements,
Never ending story,
Costs explosion, time unpredictability
High requirements for the project management board
influence on the course of project realization (Lewis 2011; Klose 2002; Caupin
et al. 2006; Lock 2007).
Basic milestone characteristics:
Event with special meaning
Beginning or end of project phase, task or package of tasks, relevant event with
major impact
Measurable
With specified time deadline
Explicit event
Limited in number (in most cases between 4 and 20).
Milestones aim at:
Verification of project activities, accepted solutions and achieved results
Enabling control of project progress,
Structuring of the project
Documentation of results
Self-control
Enabling decision concerning:
The beginning of the next phase
Repetition of the last or several last phases
Discontinuation of further project realization
Goal oriented processes
Initiation
Initialisierung Initiation
Initialisierung Initiation
Initialisierung
phase phase phase
Processe focused on the technology of project management
Quality management
Qualittsmanagement
nsbe
zoge
esse
Proz
ahre
Verf
ne
Risk management
Risikomanagem
Project
Projekt -
ent
steuerung
Sterering
Process Improvements
Prozessmanagement
Planning
Planung Planning
Planung Planning
Planung
Documentation management Production Verification Business
and Process -
Geschfts -
Validation prozess -
Adaptation
Erstellungsprozess Validierung anpassung
Training coordination
Schulungskoordination Implementation
Realisierung Implementation
Realisierung Implementation
Realisierung
Implementation Management
Einfhrungsmanagement
Einfhrungs
Implemen--
steuerung
tation
Migration Management
Migrationsmanagement
Steering
Closing and
Einfhrung Closing and
Einfhrung Closing and
Einfhrung
Start-up Management Evaluation Evaluation Evaluation
Inbetriebnahmemanagement
Fig. 2.10 Activity/role model
To reach the above objectives milestones should comply to the same SMART
criteria, which are applied to project objectives (see section 07:21 Project Goals and
Project Observations above). While determining the milesstones it is advised to:
Plan them in accordance with reality
Plan them after the task completion in due time
Plan the time needed for documentation
Set the milestones in a clear structure
After the achievement of every milestone it is purposeful to verify the plan.
The third dimension of the project objectives are costs.
Top-down Cost Estimation/ROM Costs

Relatively early, in most cases prior to any initiation of the project first estimates of
project costs are done (Process 4.3.25 Develop Costs acc. to ISO 21500). Costs
origin mostly from the business objectives and expected project profitability. The
estimations usually base on some reference models and thus contribute to the
completeness of the considered costs (Lock 2007). These estimations are frequently
called ROM: Rough Order of Magnitude, or Ballpark Estimate, and may deviate
from the final costs by 50100 %. (Schwalbe 2010).
07:20 Methods 35
Table 2.8 Characteristics of activity/role model

Granularity Single chain of phases, planning and realization may occur recursively
Level of recurrence On system component level and below several iterations to reach
positive tests results may be practiced (agile approach)
Number of iterations None on the highest level, increased number of iterations with the
decreasing level practiced
Initiation Phase Initialization phase
Planning Concept
Implementation Implementation
Closing and Closing and Evaluation Phase
Evaluation Phase
Characteristics Model reflects all project occurences,
High parallelism of 5 main processes,
Every process includes several operations and takes into consideration
one or more roles,
Planning and realization may follow iterative recursive cycle,
Each particular processes can be realized asynchronously,
Every phase is completed before the commencement of the next
phase, at least basic planning precedes realization begin
Results of each phase are a basis for the next phases,
Changes in the project are handled by asynchronous process
Application Best suited for bigger, comprehensive projects,
Undertakings characterized by significant changes introduced by a
user,
Undertakings with a required high level of integration with the
environment,
L-Timer approach
Risks Acceptance by the customer/sponsors of non-productive processes
De-synchronization in case of deficient cooperation between the team
members
Schedule Time
Project Structure Plan
Project City
Task 1
Network
Task 2
Planning Installations Operations
Task3
Task 1 South North
Task 4
Task 2 Network
Task 5 Task 8 Mngmnt Task 5
Task 3 Milestone
Task 6 Task 9 Task10
Task 4
Task 7
List of tasks of Planning
Fig. 2.11 From the PSP to a project time schedule

Bottom-up Cost Estimation/Budgetary Costs

Complementary approach of bottom-up cost estimation is done usually in the
initiation phase and further precised with the progress of the project. These so
called budgetary costs base on product WBS, project PSP, and schedule (Process
4.3.26 Develop Budget acc. to ISO 21500). An estimation of +/ 20 % is targeted.
Several components of projects costs are listed below:
Tangible Costs
Tangible (monetary) costs are cost which can be expressed in financial means.
Direct costs
By calculating an effort of each task in hours, multiplying by hourly rate, than
adding all investments needed to perform the task, and adjusting the result over the
years with interest rate we obtain roughly the total tangible cost of the project. In
estimating the cost of single task learning effect of persons performing this task
may positively impact the cost. On the other side, the unpredictability and unknown
obstacles cause additional unplanned expenditures. So altogether it makes more
sense to abandon the speculations about learning curve and calculate the project in
fix indexed rates.
Indirect costs
Beside those direct costs there are also indirect costs like electricity used,
cleaning staff, and shared services in tangible costs.
Intangible Costs
Project causes also other, intangible costs. These are the costs which can not be
easily expressed in financial means: like image win or loss, motivation gain or
reduction. It makes sense at least to list those costs in risk catalog, as they may
impact the tangible costs.
Reserves
Whatever technique will be chosen (see sections 07:30 Techniques and Tools and
08:32 Project Role Description) to estimate the costs, the unpredictability of the
project might exceed the gains of potential learning curve effect. So it is most
recommendable, and simultaneously most difficult to gut through the project
sponsors and client, to build a contingency reserve of arbitrary set at least 5 % of
total tangible costs. The analysis of 200 projects done by HP in the early 1990
identified poor project cost estimation as the second major reason of massive costs
overrun (Kendrick 2009).
Cost Baseline
The allocation of budget costs to project phases is called cost baseline. This time-
phased budget serves primarily project cost control (Schwalbe 2010).
07:25 Costs/Benefits Evaluation
An investor expects some tangible or intangible returns from the project he finance.
As a rule of thumb we may claim, that the higher are the returns from the project,
07:30 Techniques and Tools 37
the higher is the sustainability of the project and the security of its completion, at
least from the financial point of view.
Therefore, it is most recommendable to elaborate profound estimation of all
possible benefits from the project, and obtain the acknowledgment from the project
sponsors /clients, in particular in all projects were seemingly intangible returns are
expected. The weaker the financial tangible gain for an investor, the higher is a
chance that project will be dropped at the first best occasion.
Several indicators and calculation techniques for cost/ benefit evaluation are
used (see section 07:30 Techniques of Structuring). Their actual deployment
depends on the strategy of the investor. Therefore, no universal one-fit-all solution
may be given here.
07:30 Techniques and Tools
07:31 Techniques of Project Objectives Identification
Creativity is needed on various stages of project definition. Few most common

techniques are introduced hereafter. Further readings may be found in Ninck
(Ninck 2004).
Intuitive Techniques
Brain-Storming
The technique was conceived by Osborn to stimulate the generation of ideas
(Osborn 1957). The goal of Brainstorming is to find possibly vast number of
creative, sometimes unusual or new possibilities of a certain problem solution
through mutual stimulation in a group. According to Osborn four to five well
conditioned participants can generate 50100 ideas within 3060 min session.
In this procedure firstly the moderator, who collects the ideas and stimulates the
work, is to be chosen. Then participants began to name their ideas related to the
subject. It is important, that neither moderator, nor any participant attempt to
evaluate the presented ideas. They should just be written down on a flipchart or
any other suitable, visible for all mean. Moderator may drop few abstract yet real
objects terms to forge the cognitive creativeness of the participants.
In the second phase moderator with participants analyze each particular idea,
eliminate its multiple occurrence, structure and evaluate its usability (Schnitker
2007; MindTools 2013).
Brainstorming in groups should comply with the following rules:
A moderator directs the brainstorming in such a way, that he at any time remains
in control over the goal of the whole process. Longer discussion on one idea
should be avoided. The moderator is also obliged to motivate the participants to
contribute and to assure that the creativity of new ideas will get noticed.
In order to acquire a maximum number of ideas the team should include people
representing different disciplines.
Moderator and participants should be careful so as not to kill their creativity in
the germ. Thus, it is advised to create such conditions, in which every participant
do not have the feeling of domination of any other participant of brainstorming,

hindering his own creativity. Playing brainstorming can be helpful.
Except creating new ideas partners can carryout analysis of already existing
ideas in order to perfect them.
In case of need we can visualize ideas. The notes and drafts of the moderator and
the participants, also e.g. recordings of a session of brainstorming can serve as
a protocol.
635 Method/Record of Thoughts

635 Method, or in other words Record of thoughts has been conceived by
Rohrbach in 1969 (Rohrbach 1969). 635 functions similarly to brainstorming.
The ideas are not presented in oral form, but noted down by each participant,
Therefore, they match well nowadays social network communities. The method
functions in the following way (MethoDe 2013):
Six participants writes down on a piece of paper three possibilities of solutions
for one problem,
Then the piece of paper is passed further and each participant tries to crystallize
the ideas of the other one,
Then the pieces of paper are passed further until every participant receives again
the paper with his/her ideas,
At the end the ideas are analyzed and the best ones are chosen as a solution for a
problem.
In order for the presented procedure to function without a negative influence on
the creativity we should take into consideration the following points:
It is not allowed to talk during a session. We should write legibly in order to
eliminate additional questions which disturb the course after the pieces of paper
are passed around.
During the whole process it is necessary to stick to the set time frames in order to
avoid waiting and breaks in the access of creative ideas.
To prepare a draft of three proposals being a solution we need 34 min. Then
each participant receives at each phase two additional minutes to read the written
text. Tight time frames allow to use the short-term memory better.
Discursive Technique
Morphological Matrix
Swiss astronomer Zwicky created morphological matrix for systematic problem
solving (Zwicky 1948). His method is particularly well suited to elaborate a
solution build from several components, each of which may have different
qualities.
Zwicky conceived four steps:
1. Problem formulation.
This is the project goal or part of it. E.g. City network example introduced earlier
in this chapter.
2. Schematic representation of alternative qualities.
Table 2.9 Morphological matrix of the city network

City network Source of power Network design Structure
Cable Distributed Star 1 Level
Radio Centralized Mesh Multilevel
Satellite Redundant Structured
Mix-structured
Fig. 2.12 Example of a project structure plan
All qualities of each component are listed and reasonable combinations of

qualities of each element are built, e.g. Cable, centralized power supply, mesh
network, structured (see Table 2.9).
3. Performance analysis of the selected combinations. Based on the adopted evalu-
ation scheme all combinations are qualified and best is chosen.
4. Direct Action.
Consequence of decisions taken in Step 3 shall be taken.
07:32 Techniques of Structuring
Project Structure Plan PSP

Project Structure Plan is a clear, planned, often graphical or text form of presenta-
tion of all activities, vital for project goal achievement. Vital activities are those
which are necessary to make or achieve the project goals. Fig. 2.12 presents an
example plan of project structure (Heeg and Friess 1999).
Process Anal. Redesign Synthese

P-1 90 D P-2 150 D P-3 100 D
5.3.12 15.6.12 1.7.12 1.11.12 7.11.12 2.3.13
Initialization Resources Team build-up Going live

I-1 60 D R-1 30 D R-2 30 D I-1 60 D
1.1.12 2.3.12 1.5.12 20.7.12 1.8.12 6.12.12 1.4.13 8.6.13
Concept IT Implement.
IT-1 60 D IT-2 60 D
1.4.12 8.7.12 1.11.12 9.2.13
Fig. 2.13 PERT diagram
The criterion to prepare the PSP might be:

The Work Breakdown Structure (WBS)
The vital activities structure
Phases of a project.
The PSP Structure along WBS is typical for agile models. The additional for
project realization necessary activities are at risk to be omitted. Structuring the PSP
according to the project phases is a most often chosen model in the sequential
models and V model. In this book the structuring along Activity/Role Modell and
L-Timer processes is recommended for their completeness.
07:33 Scheduling Techniques
PERT Diagram
The research team, which worked in the late 1950s on Navys Polaris Nuclear
Submarine Missile Programme, developed tool for easier presentation of the
interdependencies and time progress (Sharma 2006; Stires and Murphy 1962).
Known as PERT: Program Evaluation and Review Technique tool views the
individual activities as events. Various parameters may be associated with each
activity:
Identification number (mostly in certain numbering system)
Short denominator/name
Deadline
Start date
Duration
Optional fields like risk assessment, resources etc.
An example is given in Fig. 2.13.
Beta Time Estimation

Beta process of time estimation was used in PERT to elaborate an approximate
duration of a task or package of tasks on the base of an experience of an expert. For
each activity the following three time assessments are done (Schwalbe 2010;
Sharma 2006):
Optimum time (OT) of activity realization: it determines the necessary time

minimum (assuming optimal work conditions),
Approximate duration of activity i

Ti OT WT=2 2MT=2 OT 4MT WT=6
Most likely time (MT) of activity realization: indicates most likely time needed
under standard work conditions,
Worst case time (WT) of activity realization: time spent in case of simultaneous
occurrence of all negative factors at the same time.
The mid-point (OT + WT)/2 is considered only half weight of the most likely
time.
Time for one activity is estimated as follows:
This equation results in a curve which reflects the frequency of particular time
estimations (Beta distribution). We should also point out that the MT value does not
have to reflect the arithmetic mean of OT and WT. Thus, it is highly possible that
the curve will be dually asymmetric.
Estimation of the overall time needed for a single sequence of activities can be
made as a sum of standard estimations with summary deviation of time estimations
with the assumed level of probability.
Standard deviation of each single time estimation:

i (WT OT)/6
Variance Vi i2 ((WT OT)/6)2
Total time of chain of activities
Tt Ti
Summary deviation in a single sequence of activitie:
( i2)
Standard normal deviate:
Z (T Tt)/
Approximate total duration time estimation with 99.74 % level of
probability:
T Tt +/ (3 (V2) )
Table 2.10 illustrates the exemplary Beta calculation for a sequence of three
activities. Values OT, MT and WT are given for three activities in working days.
The result of the calculation is the average time of the realization of all activities, in
total 1,040 h. The total approximate time of realization of all activities will most
likely be 1,040 +/ 172 days with the probability at the level of 99.74 %. The
reason of such significant deviation is the accumulation of average values and
variances.
Table 2.10 Example of beta process (all data calculated in days)

Package of Optimum Most likely Worst Average Standard Variance
tasks time OT time MT time WT time Ti deviation i Vi i2
A1 260 300 400 310 23 544
A2 350 400 540 415 32 1,003
A3 220 300 470 315 42 1,736
Total 830 1,000 1,410 1,040 97 3,283
Standard deviation 57
Estimated time assessment with the probability of 1,040 +/ 172
99.74 % (interval) T
Name of operation 02.2012 03.2012 04.2012 05.2012 06.2012 07.2012 08.2012 09.2012 10.2012 11.12
Beginning of a project 03.03.
Mangement system
Situation analysis
Project planning
Concept
Realization
ISO certificate
Processes
Setting priority of processes
Situation analysis
Process Design
IT implementation preparation
Situation analysis
Functional requirements, ToR
Concept of system requirements
Resources planning
Situation analysis closed 30.06
IT Concept done 12.09
10.10.
Results evaluation
ISO certification 27.10.
Project closing 31.10.
Fig. 2.14 Deadlines planning with the Gantt diagram
The other more sophisticated time assessment methods demands higher efforts
(e.g. Schwalbe 2010). However, the indeterminacy of project scope and its reali-
zation make these higher precision tools obsolete.
GANTT Time Diagram

Once the duration of each single activities is determined and their mutual interde-
pendence is set, the time schedule diagram may be drafted.
Most popular and widely used is GANTT diagram (Clark et al. 1922; Lock
2007). On the horizontal axis is the time scale drawn, and the vertical axis individ-
ual activities. In the next step the interdependencies are noted, either in a column
(like in e.g. MS Project), or directly by binding predecessors with successors. An
example is shown in Fig. 2.14.
Reliability
Level of the
Cost
Estimation
100%
Personal Delphi Algorithmic Iterativ

Estimation Estimation Assessment Approximation
Complexity
Fig. 2.15 Reliability of cost estimation techniques
Several commercial and open source products support the development of Gantt
diagrams. Free of charge complete package supporting project management is
available from the Swiss Governmental IT Authority (ISB 2013).
07:34 Project Cost Estimation
An effort in cost estimation shall be in some relation to the total costs under
consideration and the associated risks.
Small projects, where project manager or someone, who conceive the endeavor
feel competent, can be with reasonable reliability estimated by that person. How-
ever, with the increasing complexity the reliability of the estimation is decreasing.
Complexity is determined by its cybernetic nature (see Chap. 1, Introduction,
here above), emergence and unpredictability (Erdi 2008). Therefore, the more
complex they are, the longer is their description and their analysis is more chal-
lenging (Gell-Mann 1994) (Fig. 2.15).
Delphi Procedure
So as the complexity increases an involvement of additional experts might help to
assess reliably the costs. In so called Delphi procedure at least two experts shall be
consulted. Variations include independent anonymous opinions and open dialog
Delphi procedure, where experts mutually can exchange their views (Hader 2009).
COCOMO1 II
Also Delphi approach reaches its limitations with still increasing complexity, the
algorithmic assessment might be in place. Their accuracy of estimation judged by
the evaluation of numerous projects is high enough: e.g. in so called COCOMO1 II
approach (Constructive Cost Model (Boehm 1981)), the in 68 % of cases, the

deviation of budget and real costs was less than 20 % (Hummel 2011).
Typical approach is the definition of certain mathematical formula with some
variables and some constant parameters, which are set to customize the case.
The procedures are business specific. In the above mentioned COCOMO1II
algorithm for systems and software evaluation the formula is as follows:
E = C*M 0.91+0.01* SFi * EMt

Where:
E is en Effort in Man-months
C is yearly updated Calibrating constant (currently 2.94)
M Size of system (software) in units (lines of code)
SFi scale factors
EMt effort multipliers.
Sackmans Second Law

Both SFi and EMt are taken from the tables which assess the factor or multiplyer
value in dependence of the complexity assessment on the Lickert scale. What is
relevant, is that COCOMO1II include in the total cost estimation also the impact
of human factor (Sackmans Second Law, (Sackman et al. 1968))
COCOMO1II calculators are available free of charge (a.o. Research Methods
Consortium 2013; University of Southern California 2013).
Putnam Myers Estimation

Universality character has the formula of Putnam and Myers (Putnam and Myers
1992).
Effort (Size/Productivity) * (1/Development time)*

Where:
Productivity varies and is business specific
is a value derived from comparable projects and is size sensitive
(in Software: 0.16 (small project) 0.39 (big one))
In the above estimation the project costs excluding the production and series
manufacturing are considered.
Whereas there is a relatively broad area of ambiguously efficient personal
estimation/Delphi and Delphi/algorithmic assessment, relatively sharp is the limi-
tation of the algorithmic assessment in complexity surmounting. Up from certain
level of complexity the cognitive capability to assess the inaccuracy and variability
of the project limits the reliability of any of the above estimation techniques.
Examples are innovative or research projects.
In this case the estimation may be done in the learning process of iterative
approximation adapting the Putnam Myers formula.
In the specified period of time the productivity of team is carefully assessed.
Than the total size is divided by the productivity to assess the unconstrained effort
needed.
In the next step the development time is verified. If shorter than the effort of the
available resources allows, arbitrary shall be set and the estimation of the next
phases may follow. Procedure is biased with the short term observation and missing
reference models so shall be repeated iteratively to obtain best possible cost
estimation.
07:35 Project Business Case
Project manager is frequently facing the task of delivering the project following an
arbitrary investment decision. It is highly recommended particularly in these cases,
where clear financial evaluation of the endeavor has not been performed before the
project start, to elaborate the project benefits and, in the best case, to obtain an
acceptance of the results by project sponsors. The praxis demonstrates, that those
project, which has been initiated without a prior cost/benefit evaluation are first to
be dropped upon any obstacle.
In a survey of Graham and Harvey, 392 CFOs choose always or almost always
the capital budgeting techniques as presented in Fig. 2.16 (Graham and Harvey
2002). These techniques will be further briefly presented hereafter.
It shall be noted, that the popular Return on Investment ROI is not among those
most frequently used anymore. The reason might be that it is too static and under
performs as compared to the other techniques, listed in Fig. 2.16.
Internal Rate of Return IRR

Internal Rate of Return IRR is a measure of profitability of a project before the costs
of capital are considered. If IRR is higher than the cost of capital project shall be
accepted. It reflects the discount rate on investment obtained during the period of
its total compensation by the achieved revenues.
It is calculated by setting the Net Present Value NPV to zero (see below NPV).
0 CF0 + CF1/(1 + IRR)1 + CF2/(1 + IRR)2+ . . .. + CFn/(1 + IRR)n

Where:
Index 1,2, . . .n is the year of project life cycle
CF cash flow
CF0 initial capital engagement
IRR sought Internal Rate of Return
Internal Rate of Return IRR

Net Present Value NPV
Hurdle Rate HR
Payback PB
Sensitivity Analysis SA
Price to Earning Multiples P/E
Discounted Payback DPB
Real Options
Book (Account) Rate of Return ARR
Simulation Analysis/Value at Risk VAR
Profitability Index PI
Adjusted Present Value APV
0% 20% 40% 60% 80%
Fig. 2.16 Capital budgeting techniques and percentage of CFOs who always or almost always
use a given one (Graham and Harvey 2002)
IRR takes time value of money and risk into account. IRR is unreliable in
projects where negative cash flow e.g. major investment in one of the project
phases: IRR has different values each year it may be below cost of capital in 1
year, above in another. However IRR seems to be better to communicate: it is easier
to understand the potential return of x% instead of the future value in todays
money. Therefore most likely, it is the preferred technique of capital investment
evaluation (Hawawini and Viallet 2011; Bitz 1998).
Discount Rate DR
Cost of capital engaged in a project is expressed by its discount rate DR. Discount
rate reflects the risk assessment: the higher the risk, the higher the discount rate. It is
set for a specific period of time, usually 1 year (e.g. 10 % p.a.).
Discount Factor DF
The discount factor reduces the value of specific amount over the period of
considerations:
DFi 1/(1 + DRi)

for the period i.
Present Value PV
Present value PV of the project is the future value FV (e.g. cash flow) at the time if
its (present) evaluation.
PVi FVi /(1 + DRi)

for the period i.
The Net Present Value NPV is a total of initial capital engagement and present
values of all future values FVi at the cost of capital at that given period (Heldman
2009; Webb 2000; Hawawini and Viallet 2011; Schwalbe 2010).
NPV CF0 + PVi CF0 + (FVi x DFi) CF0 + (CFi x DFi)

CF0 + CF1/(1 + DR)1 + CF2/(1 + DR)2+ . . .. + CFn/(1 + DR)n
Where:
Index 1,2, . . .n is the year of project life cycle
FV Future Value (e.g. cash flow)
CF cash flow
CF0 initial capital engagement (usually subtracted value)
PV Present Value
NPV Net Present Value
FV Future Value
DF Discount Factor
DR Discount Rate
Table 2.11. shows an example of a project, where 3 years investments brought

positive revenues from the fourth year onwards. The total project life cycle is 7
years.
NPV is in this example positive project shall be started. However, it shall run at
least 6 years as only then the NPV reaches the positive values.
NPV is the measure for value creation (if >1). It adjust to time capital
expenditures, with discount factor adjust to the project risks, is additive, favours
investments with faster cash return. Its drawback is certain resistance to change
adjustments in project (Hawawini and Viallet 2011).
Hurdle Rate HR
Whenever the cash flow varies and have several ups and downs (non-linear) the
Hurdle Rate HR is applied. HR defines the minimum total gains on the engaged
capital. It may be e.g. expressed as NPV at certain value related to the capital
engaged or cumulative discount rates against the cost of capital (Bragg 2011).
Payback PB
In Payback PB the total of all capital outlays is related to the total of gains in
subsequent years. The period until the year, when PB reaches zero is called payback
time.
In our example total capital outlays are:

CFi 1 + 1.8 + 0.5 + 0.2 3.5 (Mio.)
(continued)
Total gains in the fifth year: 1.8 + 2.5 4.3 (Mio.), what would indicate,
that project already in fifth year reaches payback. However, as payback does
not account the discount, ignoring the risks and the time value of money, the
real net benefits starts first in the sixth year (see NPV).
Sensitivity Analysis SA
At any selected model of financial project evaluation Sensitivity Analysis SA
allows to predict an outcome as a consequence of certain changes. The independent
variables are modified and an impact on dependent variables is tested, e.g. discount
rate impact on NPV (Fridson and Alvarez 2011).
Price to Earnings Multiples P/E

Price to Earnings Multiples (also Price/Earnings Ratio) P/E is a benchmark of
market values of the companies, in our case of a project (Brigham and Ehrhardt
2011). As projects are unique and seldom sold during their life-cycle, is this
measure not truly considered as useful in the project profitability evaluation.
Discounted Payback DPB

Much more valuable and close to the reality is the discounted payback. It is still the
static view of the project, yet with the expenditures and earnings are rated with the
applicable cost of capital engaged (rate). (Brigham and Ehrhardt 2011).
In the example from Table 2.11, with cost of capital equal to discount rate
10 % we add the capitals revaluated each year with 10 % until the positive
cash flow is registered. In this example we obtain after 4 years 5.9 Mio. Of
discounted capital balanced by cash back first in the sixth year (it was fifth
year in regular payback calculation).
DPB corresponds with the NPV project evaluation. Yet for the difficulty of
explaining how the discount is calculated is this techniques less frequently used.
Real Options RO
Next in the series of applicable tools is a comparison of real options. This classical
approach in make-or-buy decisions is helpful also in assessing various project
implementations. Here various other techniques are used to evaluate and compare
the options.
Book (Account) Rate of Return ARR

The average (meaning arithmetical mean) operating profit of a project is related to
the book value (account) of the investment. It has to be noticed, that the assets are
after depreciation and amortization, while future profits are speculative. It
Table 2.11 NPV calculation example for a project

Cash flow DF @ Present value PV Net present value NPV
Year CF (in mio.) RF 10 % (in mio.) (in mio.)
0 1 1 1.000000 1.000000
1 1.8 0.9091 1.636380 2.636380
2 0.5 0.8264 0.423200 3.059580
3 0.2 0.7513 0.150260 3.209840
4 1.8 0.6830 1.229400 1.980440
5 2.5 0.6209 1.552250 0.428190
6 2.5 0.5645 1.411250 0.983060
7 0.9 0.5132 0.461880 1.444940
Estimated NPV of 7 year project @10 % RF p.a. 1.444940
resembles the payback calculations, however due to underestimated risks, favours

higher risk decisions as opposite to rather conservative decisions taken by payback
evaluation (Needles et al. 2011).
In our example 3.5 Mio. Investment over 4 Years gives about

0.9 Mio./Year. Average income 7.7 Mio., also over 4 years, gives
1.9 Mio./Year. The ARR is over 200 %.
Simulation Analysis/Value at Risk VAR

Value at Risks VAR measures the volatility of investment to various factors and
therefore is usually performed through simulation. With usually higher level of
confidence (9599 %) the potential worst case negative influences on project
financial outcome are examined to assess the risk of the project (Brigham and
Ehrhardt 2011).
Profitability Index PI
Useful yet seldom used is the Profitability Index PI. It reflects the present value at
the time of the evaluation related to the initial capital engagement (Hawawini and
Viallet 2011; Brigham and Ehrhardt 2011):
PI CF1 DF1 . . . CFn DFn=CF0;
If PI is bigger than one project shall be continued. PI is relative same as IRR,

contrary to the absolute value NPV. It may be compared to benefit-to-cost ratio; the
benefits shall exceed the costs. PI expresses monetary this ration.
Adjusted Present Value APV

The last of the most frequently used techniques: the Adjusted Present Value APV is
the NPV financed solely by equity and present values, allowing to include the
additional effects of debts, like tax-deducible discount rates (Brigham and Ehrhardt
2011). This instrument is applicable if financing is mainly secured with external
sources.
Intangible Attributes Balance

Business case of certain projects can not be measured satisfactory with the financial
instruments only. All public administration investments can only partially be
financially justified. Higher level of clients satisfaction through faster service,
new markets potential, but also a danger of losing motivation by the employees
or being dependant on a sole supplier are to be mutually weighted. These intangible
attributes may substitute the project financial evaluation. Both advantages and
disadvantages have to be assessed and balanced.
Functional Value Analysis

In some projects the achievement of certain functional benefits can be more
important then the achievement of economic results. Certain methods of the
analysis of functional value are presented in Chap. 7, 12:00 Problem Management:
PBM, section 12:33 Solution Assessment and Selection Techniques hereafter.
07:40 Templates
07:41 Project Documents
Planning and Scheduling process shell answer all 6 W. It is useful to verify the
mapping: which W where treated is and if the answer is satisfactory. The
Table 2.12 below shall help to trace the achievements.
7:42 Documentation of the Project Results
The basic output of this process is Project Charter, refined to Project Plans. Project
Charter has several inputs. It contains the name of project manager and authorizes
him to deploy the resources. Main outputs define the project. The last section
provide the space for those responsible to sign-off project to sign it off and to put
their comments. As the INPUTS and OUTPUTS might be several voluminous
documents themselves, it is suggestible to make the Project Charter in a form of
Guide documents with references to individual composing files (Table 2.13).
07:50 Activities and Deliverables of Project Phases
07:51 Initiation Phase

Tasks
Determine the goals and their relation with the strategy of a company and overall
results assessment
Analyze the goals and identify the objectives
07:50 Activities and Deliverables of Project Phases 51
Table 2.12 Example

No. Result What? Why? Who? When? Where? Which?
1 Goal
2 Objectives
3 Output
4 WBS
5 PSP
6 Schedule
7 Costs
8 Profitability
9 . . ...
Identify the stakeholder needs, restrictions and limitations

Draw a draft of product and project structures
Draw a draft of basic methods, key techniques
Identify core capabilities and core roles
Formulate the target values of objectives and criteria of their achievement
Carry out the assessment of economic profitability and secure the financing of
the project
Results
First Project Charter with outlines signed-off
Drafts of Product and Project Structures accepted by the client
Core Roles and Responsibilities defined
07:52 Planning Phase
Tasks
Reevaluate the objectives
Carry out the changes in the results of the Initialization Phase
Develop the Work Breakdown Structure WBS (structuring of a product)
Analyze of the procedural dependencies between the tasks and packages of tasks
Develop a plan of production processes operations
Develop a plan of validation processes operations
Develop a plan of operations in the business process modifications
Develop a plan of project management processes
Develop a plan of project implementation processes
Develop schedule and milestone deadlines
Develop the Project Schedule Plan PSP
Define all roles and responsibilities
Carry out the assessment of economic profitability and secure the financing of
the project
Elaborate the definitive Project Charter
Table 2.13 Example

Ref.
No. Object document Updated Comments
1 Project title
2 Project manager
INPUTS
3 IN: Project statement of work SoW
4 IN: Business case
5 IN: Contract
6 IN: Enterprise environment
7 IN: Organizational assets
OUTPUTS
8 OUT: Objectives
9 OUT: Costs
10 OUT: Time schedule
11 OUT: Profitability (business need)
12 OUT: Success criteria
13 OUT: Who is authorized to accept and sign off
project
14 OUT: Stakeholder needs met, restrictions,
15 OUT: Roles and responsibilities
ACCEPTANCE
16 Sign-off section
17 Comment section for stakeholders
Results
Project Plans (revised Project Charter) with all due documents signed-off
WBS and PSP accepted by the client
All Roles and Responsibilities defined
Project business case revised and accepted
07:53 Implementation Phase
Tasks
Carry out the changes in the results of the Planning Phase
Secure the Project Charter and Project Plans Conformity
Results
Validation of the results of planning phase and their appropriate adjustment
according to the decisions in the Implementation Phase
Bibliography 53
07:54 Closing and Evaluation Phase
Tasks
Carry out the changes in the results of the Implementation Phase
Evaluate the conformity with the Project Charter and Project Plans
Results
Validation of the results of planning phase and their appropriate adjustment
according to the decisions in the Implementation Phase
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08:00 Organization Management: OM
3
Quick Look
What Is It?
Organization management process OM shall design the project organizational
structure, which will target the best possible effectiveness, measured by the overall
positive perception by the stakeholders.
Who Does It?
Project manager with his initial (core) team, aided, if feasible, by the stakeholder,
who is familiar with the environment and local culture.
Why is it Important?
Project will not perform if the activities will not get structured and the structure not
supported by the stakeholders. The overall positive perception is the goal of this
process the appropriate structure secures it.
What Are the Steps?
Identify and register all stakeholders. Draft then the functional process derived
structure. Adapt it according to the local culture prerogatives, assure the right
stakeholder relationships. Design carefully the project structural modifications
and provide for the efficient team extensions. Split in separate projects of a
programme if justified. If necessary repeat these steps. Initiate few other processes
if needed. Repeat this process periodically.
What Is the Work?
Not all stakeholders are known when project starts. Sometimes the objectives and
the solutions are misty. Take some effort to best possible accommodation of all
known stakeholders, decide on their management strategy in dependence of the
objective/solution mix. The process derived structure goes fast, but cultural adap-
tation needs the highest attention and that costs time. Time and attention are
needed for any structure modification/team extension: plan it.
Do not rely on functional, process derived structures only. Overall perception of all
stakeholders is decisive for the project fate so take care to identify them,
continuously actualize their register, design and maintain the efficient and well

58 3 08:00 Organization Management: OM
time-furnished relationships. Adjust the structure to local culture learn it. Design
and allow time for any structure/team extensions if they should be productive later.
Effectiveness not the efficiency is the primary issue.
Process
First the project objectives and stakeholders has to be identified. Than the project
processes functional organization is conceived and adjusted to project environ-
mental culture and team extension. The process shall be periodically repeated with
pending issues treatment; it may be initiated by few other processes, too. Figure 3.1
depicts this process.
08:10 The Goal of Organization Management
Organization Management shall assure best possible overall perception of the

project achievements through right structure of all mutual relations between project
team members and external stakeholders, with best possible management of the
available resources.
08:20 Methods
ISO 21500 defines project organization as a temporary structure that include the
project roles; responsibilities; and levels of authority and boundaries that need to be
defined and communicated to all stakeholders of the project (ISO 21500:2012
2012). Organizational structure reflects pattern of relationships within and outside
of the project.
This definition, which wins my fullest support, indicates revolutionary view on
the organization design.
Organizational Efficiency Versus Effectiveness
The primary target of an organization is not efficiency: rather effectiveness in

meeting various stakeholders needs, measured by a degree to which an organization
achieves its goals (Daft 2009).
Up to the latest organizational handbooks of the renown organizations like e.g.
that of IPMA, ICB V3.0 the organizational efficiency, measures by the amount of
used resources (Daft 2009) is advocated (Caupin et al. 2006). Still today there are
projects oriented on efficiency solely (Doerffer et al. 2010).
The efficiency is primarily achieved by Taylors optimization of the chain of the
activities (Daft 2009; Larson 2007). As this might work well in single processes like
production line, it poses certain challenge in project due to their uniqueness and
08:20 Methods 59
08:00
P&S, PBM, CM
Pending process
improvements
and tasks
Project Objectives Objectives

and Stakeholders & Stakeholders
Identification see 08:20
Process derived
Process derived
Organisation
Organisation
see 08:21
Cultural Cultural Adaptation

Adaptation see 08:22
Team Extensions
Team Extensions see 08:23
Resources Resources Assignment

Assignment see 08:23
Yes
Problems? PBM
No
Yes
Change Requests? CM
No
Yes KM
Lessons learned?
No
Fig. 3.1 The organization management process
high uncertainty. Therefore, designing project organization along the efficiency

criterion only is doomed to fail (Larson 2007).
ISO 21500:2012 Project Organization Management Processes
In this chapter we cover the following ISO 21500 processes (ISO 21500:2012
2012):
4.3.9. Identify Stakeholders

4.3.10. Manage Stakeholders
4.3.16. Estimate Resources (adaptation)
4.3.17. Define Project Organization (develops role description and project organi-
zation chart)
08:21 Objectives and Stakeholder Identification
Already in early project stage the first organization is drafted (Dinsmore and
Cabanis-Brewin 2011). In most cases the initiator, later project manager or sponsor,
make his core team for the first stage of project initialization. In most cases these are
the prospective key project team members.
Holistic View of Project Organization

In a holistic view of ISO 21500:2012, shared a.o. by Bourne (2009), Taylor (2006;
Daft 2009), stakeholders become the focus of the project organization. Bourne
defines stake-holder as someone who has an interest, rights (moral or le-gal),
ownership or contributes in the form of knowledge and own resources to the
endeavor (Bourne 2009).
ISO/DIS 21500:2011 Stakeholders

The following typical stakeholders are named in ISO 21500:2012 (ISO
21500:2012:2012).
Project Manager leads and manages project activities and completion of the
project deliverables
Project Management Team supporting the project manager in fulfillment of his
tasks. The standard consider it optional, yet even in small project it is recom-
mendable to involve team members in project management decisions
Project Team contributes to the project success by performing specific project
roles. It worthy to notice, that the standard does not impose any functional
restrictions over the roles in a project
Project Management Office according to the Standard supportive in wide
variety of activities, in this book localized in Project Knowledge Management
and Communication. Considered to be additional outside the project team by
Standard; in authors view it is a part of the team.
The above stakeholders, on a distinct understanding, that Project Management
Office is additional, form together the project organization.
The second group of stakeholders envisioned in the Standard is led by the project
Sponsor. His role is defined by the standard as follows (ISO 21500:2012 2012)
Project Sponsor directs, justifies, authorizes resources, facilitates and supports
the project. Makes executive decisions and solves problems and conflicts that
cannot be handled by the project manager.
The main, and focal to the project fate, relationship is build between Project
Sponsor and Project Manager. Quality of this relationship, trust and
08:20 Methods 61
effectiveness is decisive to the successful project perception by the first. Option-

ally by Standard and again mandatory in my view is the institution of a steering
committee or board. It may be just one advisor to the sponsor, yet this sparring
partner is inevitable in finding the right solution to eventual project challenges.
According to the Standard:
Steering Committee or Board (Optional) contributes to the project by
providing senior level guidance to the project. High maturity guidance would
be here a better choice.
Project Sponsor, eventually aided by the Steering Committee or Board
incorporates and bear the responsibility for the maintenance of the project
Governance:
(Project) Governance is the framework by which (Project) organization is
directed and controlled. It includes aspects such as defining the management
structure; the policies, processes and methodologies to be used; limits of author-
ity for decision-making; stakeholder responsibilities and accountabilities; and
interactions such as reporting and the escalation of issues or risks.
Governance with mission, vision, strategy, goals subject to maturity model
evaluation (Cleland and Ireland 2006).
There are two other groups of relevant stakeholders: on the project passive
recipient side and project active contributors.
In the first group the most prominent stakeholder is customer.
Customer or Customer Representative contributes to the project by specifying
project requirements (Terms of Reference, authors comment) and accepting the
project deliverables (Output, see Chap. 2, 07:00 Planning & Scheduling: P&S).
Other roles on recipient side, depicted in Standard, yet not specified are (ISO
21500:2012:2012):
Other roles on recipient side, depicted in Standard, yet not specified are (ISO
21500:2012:2012)
Special Interest Groups related to the project course or deliverables may
positively or negatively impact project fate
Public broad mostly anonymous group, which may take indirectly by e.g.
changes in law a major influence on the project.
Active contributors are:
Finance Provider mostly, but not mandatory represented by the Sponsor.
Secures the financial project backbone and liquidity.
Shareholders and employees those of the project environment, who actively
influence the resources availability
Business Partners, Suppliers Which Standard identifies as contributing to the
project by supplying resources to the project.
The last and most general term is project environment. No definition is provided
by the Standard. Governance and Environment build contextual dimension of the
project organization (Daft 2009). How well the project matches the environment is
decisive for its contingency (Daft 2009). Indirectly from Figures and descriptions
the following definition may be drafted (ISO 21500:2012:2012):
Public Project Governance Business Partners

Special Interest Project Steering Financial Providers
Groups Committee or Board and Shareholders
Regulatory Project Sponsor Suppliers

Bodies Employees
Customer Project
(User) Mana-
Project Manager
gement
Project Management Team Office
PMO
Project Team
Project Organization
Project Environment
Fig. 3.2 Project stakeholders (ISO/DIS 21500:2011 2011)
Project Environment is created by the organization in which project is embed-

ded on the base of business opportunities and expected deliverables. It comprises
the Project Organization, Business Case, and Project Governance, and includes
other stakeholders named above. It is influenced by factors outside the organiza-
tional boundary such as socio-economic, geographical, political, regulatory,
technological and ecological and by factors within the organization such as
strategy, technology, project management maturity, availability of resources,
organizational culture and structure
The relationship between all stakeholders, which are named in Standard ISO
21500:2012 is shown in Fig. 3.2.
Superiors as Stakeholder
Three relevant stakeholder roles are not mentioned in the Standard:
Line superior of the project manager
Line superiors of the team members
Project coach.
The project coach role is described more thoroughly in section 08:28 Project
Coach hereafter. Both superior roles and their impact on the organization are
presented below. Project organization and people do not pop-up from nowhere. In
most cases they are assigned to the project from either dedicated organizations or
functional organization, temporarily joining the project team. Their salary,
coaching, personal matters are in most cases handled further by their parent units.
Same refers to the project leader, drafting de facto matrix organization of the
project (see Fig. 3.3.).
08:20 Methods 63
Project Sponsor
Superior of Project Project manager

Manager
Superior of Team Member A Team Member B

Team Member
Fig. 3.3 Stakeholders classification (Roberts 2007)
Fig. 3.4 Stakeholders

classification (Roberts 2007)
High Terrorists Promoters
Power
Low Hecklers Supporters
Low High
Support in Project
Once we identified the stakeholders, their impact on project shall be analyzed

and jointly registered in stakeholder register. Project manager tends to assess
stakeholders as positively contributing. Unfortunately, there is a considerable
number of stakeholders in the project environment with contra productive impact
on the project. Useful here is the classification of Roberts, shown in Fig. 3.4
(Roberts 2007).
Stakeholder Strategy
Project manager shall avoid hecklers, anticipate terrorists, court the supporters and
truly care about the promoters. The stakeholder strategy sets the rules here.
At the end it is not possible to satisfy all stakeholders same way so the art of
making right decisions in fate of the uncertainty draws the profile of the successful
project manager.
08:22 Process Derived Organization
Standard ISO 21500:2012 views projects as processes and defines the project
management processes screening off what it calls product and support processes
(ISO 21500:2012 2012). However, the inclusion of the last in a project is admitted.
Fig. 3.5 Roles creation

Basic activities Hierarchy of roles
process
Chains of activities Roles
Grouped chains
Process
Starting from the Work breakdown structure WBS the activities needed to
deliver the outputs are elaborated in Planning & Scheduling (see Chap. 2, 07:00
Planning & Scheduling: P & S), going beyond the limitations of the project manag-
ement processes in the sense of the ISO 21500:2012.
Activities are bound into chains, than groups and finally the processes are
elaborated.
Taylors Scientific Management

Ever since Frederic Winslow Taylor analyzed the process of unloading of iron from
the railcars in 1898 the efficiency of process derived, functional organizations is
known as scientific management and managers are those, who are responsible for
the efficiency of the endeavor (Daft 2009). Hierarchy of roles is created (Fig. 3.5).
The activity derived scientific management does not take into account the human
capabilities of those involved, in particular handling of the limited number of
interrelationships.
Span of Management
Graicunas introduces what he called span of management and defined three types of
interrelations between the superior (project manager) and his subordinates (team
members), which superior shall control (Graicunas (1937/2005); Singla 2010):
Direct relationship: project manager with one team member
Group relationship: project manager with one team member while the other
(others) are present
Cross relationship: between team members, about which project manager shall
be aware.
The resulting number of interrelations is:

Number of interrelations n 2n 1 n 1
In otherwise good work of Mullins is this form erroneously quoted (Mullins

2006/2008).
08:20 Methods 65
Project Sponsor
Project Manager
Production Business
Test&Validation
manager Reengineering
manager
manager
Quality manager
Team Team Team
Risk manager member PA member VA member BA
Team
Process Improvement manager member PB
Documentation manager
Training coordinator
Implementation Manager Team Team

member PC member VA
Migration Manager
Start-up Manager
Fig. 3.6 Activity/role model project organization
Graicunas considered as manageable the number of six direct subordinates (222

interrelations) on a higher level and up to 20 on the lower level (Singla 2010).
The effective number of subordinates depends strongly on the type of project,
project management style, communication style, geographical and psychological
availability of the resources treated in the following Chapter. The functional
organization drafted on the base of the activity/role model elaborated in section
07:23 Conceptual Models of Project Work Planning is shown in Fig. 3.6.
08:23 Cultural Adaptation
Project organizations unfortunately do not behave like Newtonian automata

implementing the specified processes. Unpredictability of the outcome of complex
interrelation-ships, contextual impact of the environment and team members
behavior have impact the effectiveness of the project organization. These factors
are called cultural dimension (Schein 2010) or contextual dimension (Daft 2009).
The best matching definition of culture in the context of project management

organization developed Schein from the classical anthropological models. He
defines culture of a group as:
Project Team Culture

A pattern of shared basic assumptions learned by a group as it solves its problems
of external adaptation and internal integration, which has worked well enough to be
considered valid and, therefore, to be taught to new members as the correct way to
perceive, think, and feel in relation to those problems (Schein 2010).
The organizational culture validates the governance of the project and the
governance of the project incorporating organization through the following three
levels of attributes (Schein 2010):
1. Visible artifacts
Observable behavioral regularities
Shared meanings and integrating symbols like project name or project symbol
Shared deployed technologies
Embedded skills of team members
Interaction climate between the stakeholders
2. Espoused values
Formal philosophy of the project team (shall be encapsulated in project
governance)
Espoused values (values which project team declares as worthy achievements
like e.g. quality)
Project team norms, standards and rules of game
3. Tacit assumptions
Habits of thinking, mental models, linguistic paradigms
Culture Determined Project Organization

To design the effective project organization one has to go through the profound
analysis of all three levels of organizational culture and review the functional
process-derived project organization under the criterion of the best effectiveness
of the project organization in a given environment. For example in large projects, in
an environment, which puts value on quality and has elaborated change manage-
ment culture, the project management team presented in Fig. 3.7. Supporting the
project manager might be suitable to extend the activity/role model organization
drafted in Fig. 3.6.
Sponsor-Superior(s) Project Manager Power Play

The culture of the project hosting environment in most cases determines how the
project organizational structure is embedded. It may be viewed as a power play and
balancing act between three parties (Fig. 3.8):
Sponsor
Superiors (line managers in charge of project manager and team members)
Project Manager
08:20 Methods 67
Project Sponsor
Project
Management Project Manager
Team
Communication Manager Knowledge Manager (PMO)
Change Manager Planning Manager
Activity/Role
Model Team
Fig. 3.7 Activity/role model project organization
Superior(s) Project Sponsor
Project Manager
Fig. 3.8 Power play balancing sponsor-superior(s)-project manager
Project Manager as Staff Function

Strong Sponsor (Strongest ) and strong line managers (superiors, second strongest
) dominates the project fate with project manager placed as a coordinator to the
sponsor (). Team members with partial or even full time project assignment
remain in their original departments (Fig. 3.9). Applicable successfully for small,
experimental nature projects.
Project Manager as Line Manager

The situation improves for the project manager in hierarchical equalization of his
position as line manager (see Fig. 3.10). The team members are assigned to this
project manager structure and their former or current superiors can exercise less
influence than project manager on their activities. In some constellations project
Project Sponsor 1
Project Manager 3 Project Coach
Superior 2 Superior 2 Superior 2
Team Member
Team Member
Team Member
Fig. 3.9 Project manager in staff of sponsor or superior
Project Sponsor 1
Project Manager 2
Team Member Superior 2

Fig. 3.10 Project manager as line manager
Project Sponsor 2
Project Coach
Project Manager 1 Superior 3
Superior 3 Team Member

Fig. 3.11 Project manager as primary and only partner of sponsor
manager rapports to his superior (e.g. projects department chief) as well. This is
most common project placement within the environment with team members in
substantial partition of their time working for the project.
Project Manager Directly and Solely Reporting to the Sponsor

The last constellation is the one where project manager exercise the dominating
power. The line superiors, if present at all, plays here minor role. Big, long time
projects with a large project team are best suited for this type structural embedding.
An example is the worldwide longest Swiss Railway NEAT Gotthard tunnel:
project with couple thousands of employees, hundreds of suppliers, six billions
CHF budget and 25 years duration time (Fig. 3.11).
08:20 Methods 69
Pulled weight
500 kg Theoretical
performance
400 kg
300 kg Effective
performance
200 kg
100 kg
63 kg
1 2 3 4 5 6 7 8 Number of persons
Fig. 3.12 Ringelmann effect (Ringelmann 1913; Nijstad 2009)
08:24 Team Extensions
Very seldom project starts in a complete team and close as such the endeavour.
Typical project is initiated by small group on the base of business opportunities.
Soon the project core team emerges: in most cases representative of sponsors or
customer and nominated project manager. In some cases other stakeholders
irrespectively of their hierarchical position, based on their contribution towards
project goals join this core team.
Already this core team implicitly creates a culture and project roles are shaped
along the current needs of the activities adjusted to this unspoken culture.
Defining a new role in a project it is not only the question of the WBS-derived
activities to be done a complex iterative process is triggered.
New team member passes the process of socialization and what Schein calls
Acculturation (Schein 2010) assimilation of the core team culture.
However, each new team member means eventually new stakeholders in a
project, redesign of the project structure plan, cultural impact. Obviously in a
team of 100 the 101st member has lesser impact, than the sixth person in a team
of five.
Ringelmann Effect
Unfortunately due to the social loafing with the increasing number of team
members the overall efficiency decreases (known as Ringelmann effect).
Ringelmann noticed, that while single person may pull 63 kg, the team of eight
pull only 49 % of theoretically expected result of 8 63 504 kg (see Fig. 3.12),
(Ringelmann 1913; Nijstad 2009). This loss of performance is a consequence of
diminishing motivation and increased coordination effort and is registered also in
other disciplines (Nijstad 2009).
The motivation does not significantly fall if there are more than three team
members (Ingham et al. 1974); it may even increase if the task is attractive (Zaccaro
1984).
All losses in teams of more than three team members may be thus attributed to
the increased coordination efforts, what Ringelmann concluded in his experiments,
too (Ringelmann 1913).
In conclusion any new project team extensions shall set the initial conditions and
provide the information to initiate the second run of the Organization Management
process: new stakeholder analysis, process derived organization modification, cul-
tural adaptation, management span and role hierarchy adaptation and finally the
resources management.
08:25 Resources Assignment
Resource
The ISO 21500:2012 defines the process 4.3.16 Estimate Resources but not the
resources as such. IPMA ICB 3.0 defines resources as embracing people, materials
and the infra-structure (such as materials, equipment, facilities, services, in-
formation technology (IT), information and documents, knowledge, funds) required
to carry out the project activities (Caupin et al. 2006).
In Process of Planning and Scheduling the budgetary values has been elaborated
in order of overall project profitability.
In the process of Organization Management the final project organization is
elaborated and only than on the level of al-most individual activity the required
resources can be estimated (Muller-Ettrich 1999). Resource requirements and
resource plan are elaborated.
Human resource requirements are defined by the role description (see section
08:30 Techniques and Tools hereafter) and resource plan. The human resources
allocation is a complex process treated in Chap. 14, 20:00 Human Resource
Management HRM. Once the role owners are selected their availability has to be
assessed and a revised human resource plan done.
The materials, equipment, facilities and services are planned depending on their
relative value and availability.
The personal access to information technology, desk or office appliances are
considered as marginal value as compared to the human resource cost. So not
surprisingly many in project team have permanently one or more office spaces
and IT-infrastructure to their individual disposal. Here the demand is uncondition-
ally met.
Resources which are rare or highly expensive are shared here the time-based
resource plan is drafted.
08:20 Methods 71
Project Sponsor
Programme Programme Manager

Management
Team Communication Controlling
Change Manager Programme Mg. Office
Legal Services Infrastructure Services
Projekt A Projekt B Project C
Fig. 3.13 Organization of the projects programme
08:26 Managing Complex Projects
Projects like city telecommunication network (see Chap. 2, 07.00 Planning &
Scheduling P & S), Swiss Gotthard tunnel or World Football Championships with
large amount of activities and participating persons can be better manageable by
splitting the whole endeavour into several projects with a common goal
programme (see Chap. 1, Introduction for definition).
Programme of Projects
A Programme, according to the ISO 21500:2012, is generally a group of
related projects and other activities aligned with strategic goals. Programme
management consists of centralized and coordinated activities to achieve the
goals (ISO 21500:2012 2012). Programme coordinates the course of several
independently managed projects. As each project runs against own time sched-
ule, yet the changes impact the whole endeavour, the common governance,
financial and deliverables achievement controlling, communication and infra-
structure management, including project management office PMO are the
challenges of programme manager. His programme management team secures
adequate handling (see Fig. 3.13). Frequently project managers of programme
projects are part of the programme management team.
Programme NEAT Alptransit Gotthard.

(Alptransit Gotthard 2013)
After many years of political uncertainty 1992 the Swiss population
and 1998 Swiss Government gave green light to this six billions Swiss
francs, project. Over 200 major tenders were issued so far. Starting 2016/
2017 cargo and passenger trains speeding up to 200 km/h will cross this
57 km longest worldwide tunnel.
(continued)
Fig. 3.14 Organization Alp Transit Gotthard Ltd.
To manage this 25 years endeavour a subsidiary of Swiss Federal Rail-

ways, Alp Transit Gotthard Ltd has been founded. The company is organized
like programme of in fact three other huge sub-programmes.
Board of Directors, consisting of seven members, represents the sponsor.
Company (programme) management under CEO Renzo Simoni includes the
three sub-programmes managers and financial and management services manager.
They are supported in management team by legal services and media office.
Two sub-programmes: Tunnel and Track Construction Gotthard and
Ceneri have several complex by themselves individual projects. The Railway
Engineering sub-programme is organized functionally, handling several indi-
vidual projects in parallel (see Fig. 3.14).
08:20 Methods 73
Table 3.1 Project organizational maturity terms

Term Definition Example
Best practice Optimal way recognized by industry to Establish internal project
achieve a stated goal or objective management communities
Capability Incremental steps that lead to the best Facilitate project management
practices activities
Outcomes Results of applied capabilities Local initiatives, meaning the
organization develops pockets of
consensus around areas of special
interest
Key Criterion user to determine the degree to Community addresses local issues
performance which the outcome associated with
indicator (KPI) capability exists
08:27 Organizational Maturity Assessment
Industry best practices may help to assess own project organization and eventually
lead to the adjustments targeted in higher effectiveness.
Organizational Maturity
Maturity indicates both the richness and the consistency with which certain
practices are applied across the organization. Project Maturity becomes an indicator
of process capability (Nandyal 2003). Capability determines the project outcomes,
which in turn can be measured by Key Performance Indexes KPI. Table 3.1 gives
the definitions and example from OPM3 (Schwalbe 2010).
The measuring of an actual project organizational practices against recognized
and comprehensive set of best practices is a goal of several standards. They
differentiate in number of referenced practices (586 in OPM3) as well as in levels
of maturity (three in P3M3, five in People CMM). Some examples are given in
Table 3.2.
Basic weakness of all maturity models is missing deterministic, proven track of
impact of the practices/attributes on project performance. They assume that the best
practices do deliver, what may not be true under specific project conditions (Davies
2007). Therefore, the usability of these maturity models is rather to be sought in
certain equalization of project management practices than in the project perfor-
mance improvements.
08:28 Project Coach
In higher developed project-conscious organizations the project teams, and in

particular project manager, are supported by a project coach. Project coach acts
on behalf of project sponsor, his tasks, however, differ substantially. As in the
sports, coach is judged by his win-lost record not how well he planned the game
Table 3.2 Examples of organizational maturity evaluation models

Abbreviation Full name No of practices No of levels Reference
OPM3 Organizational 586 Four: Standardize, Bourne
project management measure, control, 2009;
maturity model improve Schwalbe
2010
PCMM People capability Five in process Nandyal
maturity model organizational 2003
development
P3M3 Portfolio, programme About 600 generic and Five: Avareness, OGC, P3M3
and project specific attributes, six repeatable; defined, (2011)
management descriptive elements managed,
maturity model optimized
PMOM Project management Not available Not available Caupin et al.
organizational 2006
maturity
P2MM PRINCE2 maturity Same as P3M3 Three (first three of Blockdijk
model P3M3 levels) 2008;
Hedeman
et al. 2006
(Schwalbe 2010). So the coach sole goal is to lead the project team towards
successful project realization.
Emerson and Loehr identify three key success factors, leading to what they call
the success equation (Emerson and Loehr 2008). However, the factors are rather
bound by the mutual multiplication than by simple addition as in Emerson and
Loehr approach.
Level of Success in a Project Aptitude*Attitude*Available Resources.

Where:
Aptitude: the intellectual capital build of capabilities and capacity of an
individual to complete the task at hand
Attitude: intrinsic motivation (see Chap. 18, 04:00 Self Management (Work
& Life Balance): SM), confidence and focus on task accomplishment
Available Resources: tools, equipment, time to perform the task.
As unimaginative project managers believe that aptitude coupled with sufficient

available resources leads straight to the project success, it is a common sense that
without a right attitude it is forlorn hope; an attitude play here a decisive role.
An aptitude may be developed through learning; the resources can be made
available. The right attitude can be best developed through the coaching.
The coach recognizes which of the above factors impacts the current project
situation and he acts accordingly:
Leads the coachee to acquire the necessary knowledge, develop the abilities,
leverage talents, and skills if aptitude deficiencies endanger the project success.
Table 3.3 Coach challenges

Strength Weakness
Persistent becomes Stubborn
Easygoing Pushover
Enthusiastic Unrealistic
Reliable Slow to change
Spontaneous Inconsistent
Smart Know-it-all
Likable Conflict averse
Dynamic Overbearing
Support project manager in obtaining the required resources, is it personal time

management improvement, or sponsor allowance demand.
Attitude: works on coachee intrinsic motivation (see Chap. 18, 04:00 Self
Management (Work & Life Balance): SM, sections 04:21 Personality Entities
Interrelation Chain and 04:24 Intrinsic Motivation), confidence and focus on
task accomplishment
The coach helps project manager and project team members to reach higher
effectiveness by creating a dialogue that leads to awareness and action (Emerson
and Loehr 2008). He acts like a mirror to the project stakeholders: he encourages to
step back, look at oneself, analyze, What happens?, analyze, What is the situation?
Coach manages the project stakeholders weaknesses and finds the opportunities
(Ralston 2007). It is a fine balance act for the coach, demanding high degree of trust
between the coach and coachee to play the strengths and carefully avoid the
weaknesses, as easily the advantages become the handicaps (see Table 3.3)
(Ralston 2007):
The dynamics of personality development and project progress is met through
the larger vision and micro-plan of its realisation, adjustable to the current situation
(Morgan et al. 2005). Authors own experience strongly advocates this role.
08:31 Techniques of Roles Identification and Creation of

Organizational Structures
Procedure of Roles Identification

The effectiveness of a role is relative to the functional demand, abilities of the
existing team, culture, communication willingness and last not least capabilities of
the prosperous role owner. Therefore, common elaboration of the role definition in
project team as proposed by Weaver and Farell and shown in Table 3.4, is
considered to be the most sustainable approach (Weaver and Farell 1999).
Table 3.4 Role finding technique

Step Description/actions Questions to be answered
1 Project team brainstorms possible roles
Moderate brainstorming responses to 1. What key roles do we need in order to
questions 1 and 2 achieve the project objectives?
2. For each role: what skills, knowledge
competences, and abilities are required?
2 Project team sorts and assigns roles
Moderate brainstorming responses to 3. Is this role necessary? (consider each role
questions 3 and 4. Than have them assign one at a time. A role with a no answer is
roles to members by discussing question 5 discarded)
4. Is the entire set of roles sufficient to
achieve our purpose? If not: What roles must
be added?
5. Who should be assigned to each role?
3 Project team defines roles
Help individuals to define their roles. Ask the 6. How do I describe my role?
team to reach consensus on the role 7. What skills, knowledge, competences, and
definitions abilities do I think my role requires?
8. How does my role help the team to reach
project objectives?
9. How does my role coordinate with other
roles?
4 Project team aligns the project objectives with the roles
Ask the team to review its set of objectives 10. How do our objectives align with our
and roles. A matrix some-times helps this roles?
analysis
08:32 Project Role Description
A role, originally a dynamic aspect of a status (Kendall 2010) became a synonym of

project job description, incorporating both: the role (we play) and the status (we
occupy). The relational character of the role better reflects the mutual interdepen-
dence in a team, than the absolute job description model. The dynamics of a role
matches also better the temporary character of project organization.
In strive of a comprehensive and consistent role description we apply the same
approach as in the activity description (see Fig. 3.15).
Closest to this concept is the Position Analysis Questionnaire (PAQ) (Grant
1989). PAQ recognizes work input, work output and relationships, misses, how-
ever, the preconditioning with offered status, which significantly impacts the
performance of the role owner. The relevant ISO 21500:2012 specify solely the
classes of expected competences of roles owners without a clear role definition
(ISO 21500:2012 2012). These classes are later extended with expected cognitive
competence of PAQ. Job context and other job characteristics of PAQ are included
in the status hereafter. Status comprises also the authority (meant as competences in
HERMES 2005 (HERMES 2005 2005)). The responsibilities are part of an output.
Fig. 3.15 Role definition Expected

model competences
Work input Role Work output

descriptor
Relationships in Relationships out
owner
Offered status
Table 3.5 Role description: role, inputs and outputs

No Parameter Definition Example
1 Role descriptor
11 Short Descriptor used in daily communication in PM project manager
project
12 Full Correct context relevant role description Net Supplier Inc.Fun City
description ICT network project
manager
2 Owner
21 Formal titles Academic, company awarded titles PhD, Net supplier fellow
22 Names Names as used in project environment Juan Maria Gonzales
3 Work input
31 Physical Results of someone else work, problems to be Financial data from
inputs solved company services
32 Mandatory Project rules, regulations, governance Project budget
data
4 Relationships In
41 Stakeholders Stakeholders, who may contact role owner as Financial department clerk
In provider
5 Work output
51 Responsibility Group of deliverables or project activities City ICT Network delivery
which role owner incorporates towards other as scheduled
stakeholders, usually going beyond his own
deliverables
52 Physical Expected output from the role owner. The Project WBS, PSP,
deliverables status, which might be the result of the activity Organisation, Project
of role owner, is considered to be physical efficiency control
deliverable, too
53 Set priorities Priorities between deliverables of the role set Priority 1: ICT network
by the superior delivery Priority 2:
efficiency
6 Relationships Out
61 Stakeholders Stakeholders about whom the role owner Lord Mayor of the Fun City,
out should take care Project team leading staff
Table 3.6 Role description: expected competences and status

No Parameter Definition Example
7 Expected competences
71 Technical Competences for delivering projects Project Manager Education, min. a
competences in a structured way, including the certificate, desired university degree
project management processes in the field
defined in this standard (ISO
21500:2012 2012)
72 Behavioural Competences associated with Extrovertive, capable to motivate
competences personal relationships within defined and to lead the negotiations
boundaries for the project (ISO
21500:2012 2012)
73 Contextual Competences related to the Experience with the Net Supplier
competences management of the project within the Inc. products and processes, at least
organizational environment (ISO 1 similar project done
21500:2012 2012)
7-4 Cognitive Reasoning, decision-making, Risk-conscious, well founded
competences analytical, reflexion capabilities decision making, learning-
(Grant 1989) improvement approach
8 Status
8-1 Role related Titles authorizing to justified Vice-President in charge of
titles authority and privileges Municipal ICT networks
8-2 Direct superior Position of the superior, to whom role Net Supplier Inc. Company
owner reports President
8-3 Authority The business areas, where role owner All technical and organizational
decide on behalf of his employer project matters, financial matters
um to 1 million US$
8-4 Remunerations Financial and non-financial rewards Annual salary of xxxx plus family
insurance
8-5 Work Set-up in which the role owner is Individual office with meetings
conditions supposed to perform his job: office, space, full access to company
equipment, tools, infrastructure, infrastructures, 40 h weekly at
temporarily and spatial limitations minimum
7-6 Deputy Define role in a project, which take Manager of the project
care about the work output and infrastructure
relationships in case of unavailability
of role owner
Definitions and an example are given in Tables 3.5 and 3.6. Suitable subset may be
used in role advertisement.
08:33 Techniques of Analyzing Goal/Solution Impact on Project

Structure
Projects by nature are unique and only few of them have clearly specified objectives
and the solutions, how to reach them. This has consequences on the project
organization. Different measures has to be taken to mitigate the effectiveness of
the project team.
08:40 Templates 79
Fig. 3.16 Objectives/ Objectives

solutions taxonomy of
Wysocki (Wysocki 2011) Not clear Emertxe Extreme
Projects Projects
Clear Traditional Agile Projects

Projects
Clear Not clear Solutions
Wysocki taxonomy classifies projects along the degree of the clarity of the
project objectives and project solutions (Wysocki 2011) (Fig. 3.16).
It is a qualitative evaluation yet helpful in determining the appropriate project
organizational structure.
In what Wysocki calls Traditional projects the vertical organization with clear
structure, efficiency and control provides for stability and reliability (Daft 2009).
Unfortunately only few projects may claim to be traditional.
Projects with clear objectives and unclear solutions are best structured as agile
project at the expense of cost and objective stability. Agile manifesto put useful
results before contractually agreed objectives (Beck et al. 2001), cost control
excluded.
The Emertxe Projects aims at finding new application areas for available
solutions. Also here the costs and time are variables.
The extreme projects target the goals with unclear objectives and unknown
solutions. This situation can be best mitigated by a horizontally oriented network
o cooperating team members, each of them flexible and together as a project
structure capable to learn and adjust. Even if we recognize, that learning contradicts
the efficiency, we shall notice, that the informal processes (relationships in and out)
contribute to the efficiency here (Moore 2010).
As the project develops also the objectives and solutions may change both
from clear to unclear and opposite. Thus the changes in the organization and
structure of the projects shall be anticipated.
08:40 Templates
Determination of roles in a project team is an important process, which in any of

projects in the Wysockis project type taxonomy, contributes to the efficiency due
to the optimization of the learning effects and increased motivation of the
participating team members. However, the changes destabilize all procedural
interdependencies and working relationships leading to the efficiency losses.
Table 3.7 Organization improvements meeting

Project organizational structure change meeting
Reasons/purpose
Participants Role, role owner
Absentees Role, role owner Risk for the decision
Stakeholder change Role (owner) Class power/support in project
Relationship In Relationship Out
Current organizational deficiencies Team proposals to close the gap
Proposal Anticipated quality
Solution A Solution B Solution C
1 1 1 1 1
2 2 2 2 2
3 3 3 3 3
New structure Description, chart
Affected stakeholders Relationship In Relationship Out
Role description File x.x
Change request Submitted to . . .. . .. . .. . .. . . on. . .. . .. . .. . ..
Table 3.8 Stakeholders identification

Stakeholder register entry No. . .
Stakeholder role/position Role/position owner
Contact data
Relationship In Superior
Class power/support in project Current strategy
Therefore, these changes shall be particularly meticulously registered and in the

Chap. 9, 14:00 Change Management Process CM duly directed to the careful risk
assessment (see Chap. 8, 13:00 Risk Management RM).
The template, Table 3.7. serves this purpose.
Basic outputs of this process are:

Resource requirements (ISO 21500:2012 4.3.16 Estimate resources). Refined
after considerations regarding the stakeholders and relationships in this chapter
Resource plan (ISO 21500:2012 4.3.16 Estimate resources). Human and mate-
rial resources allocation
Role description (ISO 21500:2012 4.3.17 Define Project Organization), as
shown above in Tables 3.4 and 3.5.
Project Organization chart (ISO 21500:2012 4.3.17 Define Project Organiza-
tion). Describes the formal project structure as discussed above in this Chapter
Change Requests in stakeholder management (ISO 21500:2012 4.3.10 Manage
Stakeholders). These are results of e.g. meeting as presented above in sections
08:10 The Goal of Organization Management to 8.41 Project Documents.
Stakeholder register (ISO 21500:2012 4.3.9 Identify Stakeholders). Exemplary
template is given hereafter in Table 3.8.
08:50 Activities and Deliverables of Project Phases 81
08:50 Activities and Deliverables of Project Phases
Activities
Identify the core team and first key stakeholders
Identify the governance
Draw the first organization chart
Verify and adjust the organization chart to the culture
Set the rules of organization structure extension
Estimate roughly the resources based on Project Charter
Results
First stakeholder register
Core team organization
Organization structure extension rules
First resources estimates
Change requests regarding the organization structure extension elaborated and
reported
Activities
Identify possibly all stakeholders
Classify stakeholders and strategy of their management
Elaborate the process derived organization
Analyze the culture and adjust the organization for the best stakeholder manage-
ment and cultural integration
Refine the rules of organization structure extension
Refine the resources and elaborate the resource plan
Results
Comprehensive stakeholder register
Project team target organization chart
Roles descriptions
Refined organization structure extension rules
Resource requirements
Resource plan
reported
Activities
Stakeholder management and register actualization
Project organization continuous evaluation of its effectiveness
Resource plan actualization
Change requests regarding the resources
Change requests regarding the organization structure extension
Results
Stakeholder register maintained
Effectiveness of the organization verified
Change requests regarding the resources and project organization structure
elaborated and reported
Resource requirements adjusted
Resource plan adjusted
reported
Activities
Release resources
Collect final lessons learned for Knowledge Management Process
Results
Released resources
Final lessons learned document
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09:00 Procurement Management: PRM
4
Quick Look
What Is It?
Procurement Management (PRM) is the process leading to the selection of the
lowest price or most advantageous supplier through carefully prepared and planned
tendering procedure. The resulting contract between the involved parties is
administered during the project and managed afterwards.
Who Does It?
The optimal tender management team consist of procurement specialist, project
manager, application and solution specialists, representative of the purchaser,
document list and a challenger.
Purchaser expects the best choice of the supplied project parts. The public procure-
ment demands lawful and justified selection along documented process and the
awarding algorithm.
What Are the Steps?
Basic steps are: plan, select supplier, administer contract. Planning resemble P&S
Process: Work Breakdown, Team roles, Scheduling, Make or Buy decision, elabo-
ration of the awarding algorithm. Tendering and evaluation lead to the contract
awarding. This is then to be managed.
What Is the Work?
Good planning (Work breakdown of what has to be done to procure?) and a
competent team are cornerstones of the success. The most critical are proper,
function and not product oriented technical specifications the evaluation is easier
and less prone to claims. So take time to do it right. Highly intense is the elaboration
and commitment of all stake holders to the awarding algorithm. It is also worthy to
give some more considerations to the procurement procedure as it is a trade-off
between the time needed for the evaluation, duration of the selection and effort put
in by the procurement team.

86 4 09:00 Procurement Management: PRM
09:00 P&S, OM, EVM, QM,

Pending process PBM, CM, CFM, TM
improvements
and tasks
New
Procurement plan Yes Plan Procurement
or changes? See 09:22
No
New
Yes Select Supplier
Supplier
choice? See 09:23
No
New Contract Yes Administer

management or Contracts
changes? See 09:24
No
Yes
Problems? PBM
No
Yes
Change Requests? CM
No
Yes
Lessons learned? KM
No
Fig. 4.1 The procurement management process

Plan realistic it takes months to make the right choice, but it pays back in years
afterwards. Build a competent procurement team. Obtain the consensus and accep-
tance of the technical specifications and awarding algorithms from the relevant
stake-holders. Bear in mind that the supplier is your future partner not an enemy.
Process
Regularly pending issues shall be solved. Shall new procurement be planned or

changes in the current one be pending, the Plan Procurement sub process shall be
started. Subsequently the supplier selection and supplier contract are to be treated.
The new emerging problems, change requests and lessons learned initiate the
corresponding process. Figure 4.1 depicts this process.
09:20 Methods 87
09:10 The Goal of Procurement Management
Procurement management shall secure an efficient, sustainable, lawful, and com-

pliant with the relevant regulations and project needs, handling of the suppliers in
all project phases.
09:20 Methods
ISO 21500:2012 Processes
The ISO 21500:2012 defines three relevant processes (ISO 21500:2012 2012):
4.3.35 Plan Procurement
4.3.36 Select Suppliers
4.3.37 Administer Contracts
They reflect most closely the authors own view on procurement management in
a project. First the procurement has to be planned, suppliers selected and the
resulting contracts administrated. The contract administration in the Draft of the
above Standard is explicitly foreseen in the control perpetual loop. The other two
ISO 21500:2012 processes are in the process groups, which are admitted for
renewed execution, yet the descriptions do not cover changes or adaptations in
these processes. This may lead to false conclusion, that the activities in those
processes are executed once only. In most cases, a project subjects to re-planning
once a supplier is selected. The cases of procurement specification change or
supplier replacement, and others, which occur during the project realization, are
not indicated in the said document.
To underline the perpetual sequential character of all three ISO 21500:2012
processes, they are bound as sub-processes into a singular chain of cybernetic loop
procurement management process.
09:21 Procurement Process and Contract Management
The Outputs of the project in most cases outlive the project duration time. The
relationship between the purchasing party and the supplier continues past the
project closing and has to be regulated. Therefore, we distinguish the process of
contract management, which goes beyond the project and takes over the outputs of
the procurement process, in particular the Administer Contracts sub-process. The
contract management is relevant to the project but is out of scope for the project; all
relevant project issues regulate the Administer Contracts sub-process.
The supplier may be bound into the project course in two different ways:
General contractor
1. The purchasing organization cedes all financial and legal aspects to the project
organization. The project organization manages all aspects of the supplier
relationship, and bears the formal and legal responsibility for the project outputs.
Organization
Purchaser Purchasing Organization (Customer, Sponsor, contract partner)

Regulations
Supplier (contract partner)
Contract Contract Management
Supplier
Regulations Conti-
nuation
Plan Select Administer
Project Procurement Suppliers Contracts
Closing &
Initiation Planning Implementation Evaluation
Project Organisation (contract partner) Regulations
Law
Time
Fig. 4.2 The interrelationship between the project goals, objectives and target values
The project organization or project handling organization is or becomes a legal

entity and is a general contractor towards the purchasing party.
Authorized Purchaser Representative
2. The project as an entity represents the purchaser with an authority to decide and
negotiate contract. The legally binding contract and remunerations are regulated
between the purchaser organization and supplier directly. The project organiza-
tion as a purchaser representative in charge of the project may be but must not be
a contract party.
Clear bipolar relationships between the project stakeholders and supplier on one
side, and project manager and project sponsor, who represents the purchaser, on the
other side, support the positive development of the social relationship in a project.
In the second case the position of project and project manager is weaker there is a
developing or already developed relationship between the project sponsor and
supplier, which may affect the project course.
Due to this ambiguity the supplier is shown between the purchaser and a project,
tending towards one or other side (see Fig. 4.2).
The whole process is time-related. Purchasing organization is the longest
existing in this social network. It creates the project, which, in the implementation
phase, initiates the working relations with the supplier. Closing of the project passes
all contractual claims and rights to the contract management of the supplier or
purchasing organization. Therefore, we differentiate the sub-process of contract
administration (ISO 21500:2012 4.3.37 Administer Contract) from the product life-
cycle relevant contract management of purchaser and /or supplier (Gallagher et al.
2011).
09:20 Methods 89
Plan Procurement
Sub-process
Elaborate Output
(Scope and Quality)
Elaborate
deliverables
Develop time schedule
Procurement
Objectives Estimate costs of
planned
Procurement Procurement
No
Objectives
acceptable?
Decide
Yes
Make or Buy
Develop
Procurement
Plan Select
tendering procedure
No
Procurement Plan
acceptable? Select tender
management team
Yes
No
Primary Outputs Elaborate award
acceptable? algorithm
Yes
Elaborate tender time
Plan Procurement
schedule
Sub-process
End
Fig. 4.3 Plan procurement sub-process
09:22 Plan Procurement
Two major steps are performed in procurement planning (see Fig. 4.3):
Process 4.3.35 Plan Procurement

Procurement Objectives Development
Procurement Plan Development
Procurement Objectives Development

Planning & Scheduling process 07:00 elaborated product structure. Parts or com-
plete product may be supplied by a third party. The specification of planned
supplies reasonably follows the same iron triangle, which was introduced in Project
Objectives specifications in Chap. 2, section 07:21 Project Goals and Project

Objectives:
Procurement Objectives
Outputs (Scope and quality of expected deliverables)
Time schedule of deliverables
Cost of planned procurement (deliverables cost).
The specifications of Outputs, even if they describe the human labor services, are
called in several regulations Technical Specifications or Terms of Reference
(Neumann 2008). However, in international disputes the term Terms of Refer-
ence is a compulsory document containing the identification data, claims and
issues of the contract parties (Schafer et al. 2005). As this is broader meaning
than the Technical Specifications, we restrain hereafter to use the term Technical
Specifications only.
The definition of the Technical Specifications in e.g. European Public Procure-
ment law, in various Appendices, says that these are prescriptions of the intended
procurement, which permits the procured work, a material, a product, or a supply to
fulfill the use for the purchasing organization (Hebly 2008). To keep all options
open, unless purchaser or project regulations restrict them, the Technical
Specifications shall apply whenever possible standards and rather describe the
desired performance of the planned procurement, not the possible solutions
(Quigley 1997). Performance is given by:
The needed functionality (e.g. network shall be fully operational at minimum
2,000 users simultaneously)
Non-functional demands (e.g. only earth cabling admitted) and
Given quality of the delivery (Quality of Service 98 %).
Time schedule of supplies subjects to several modifications during the project
life cycle. Nevertheless, the project needs elaborated in the PSP project schedule
plan are the starting point here. The demanded deliveries shall be foreseen as late as
possible, yet with a sufficient buffer for the eventual delays.
Once the desired timing is elaborated, it shall be validated by the market
potential and the whole project schedule adjusted if necessary (e.g. Implementation
of the network by majority of suppliers takes 12 months in minimum, whereas the
city originally planned 4 months only. The whole project needs an extension of at
least 8 months).
Now, having the technical specifications and the reviewed timing ready, the
costs of the prospective supply have to be elaborated. The cost assessment is
relevant to the feasibility evaluation and budgetary procurement limits. The
selected techniques are given in Chap. 3 09:00 Purchase Management PRM, section
09:31 Content of Invitation to Participate or Call for Tenders.
At this stage one or more of target values of procurement objectives might not be
acceptable due to e.g. too high costs or to long supply delivery time. In a conse-
quence the procedure has to be repeated: scaling down the targeted procurement,
changing the project objectives, etc. so long until acceptable procurement
objectives will be reached.
09:20 Methods 91
Table 4.1 Make or buy evaluation

Solution A Solution B
Id. Name (buy) (make) Limits
C1 Fix costs 6,000,000 7,200,000 7,000,000
C2 Variable costs/unit F1 130,000 100,000 100,000
C3 Variable costs/unit F2 0.03 0.02
F1 60 (years) 60 60 70
F2 100,000 (cars) 100,000 100,000 120,000
O1 Total costs of ownership 13,980,000 13,320,000
60 year
S1 Uniqueness of solution 2 10 1
U1 Geological tsunami risk 3 4 0
U2 Trend towards car-sharing 3 3 1
S1 Local employment 1 5 0
E Final evaluation Preferred if investment can be
increased
Procurement Plan Development

Procurement Plan contains all the information about how the intended procurement
shall be conducted. The basic decision which influence the following procedure is:
Make or Buy
From the methodical point of view, it is an evaluation of two or more alternatives.
Table 4.1 summarizes the criteria.
Three parameters define the financial break-even between the alternatives:
Fix Costs + Variable Costs * Frequency.
In projects, the variable costs have higher impact on the break-even than the fix
costs; primarily due to the non-tangible variables and uncertainty immanent to the
project nature.
The frequency variable has two dimensions:
1. The product life-cycle, i.e. the total time of usability of the project outputs
2. The physical quantity of any unit involved in the exploitation of the project
outputs.
For example, bridge construction shall serve 60 years (life cycle) and let 100,000
cars pass through (physical quantity). For the simplicity of this example we restrain
from involved capital calculations presented in Chap. 2 07:00 Planning & Schedul-
ing: P & S, section 07:35 Project Business Case.
The non tangible variables in projects are (Nienhuser and Jans 2004):
1. Specificity: the more the intended procurement is purchaser specific, the higher
is the dependence on the supplier and risk of his desire to capitalize on this
dependence (e.g. by increased costs of maintenance).
2. Uncertainty: parametrical (environment, technical (e.g. tsunami impact) and
behavioral (e.g. social negative perception of individual car usage 40 years
from now on)).
The experience of the author suggests the third dimension:

3. Current project set-up, which may favor one alternative against the others (e.g.
free trade economic zone, preference for Make).
Each parameter and each dimension may be compound of numerous variables:
e.g. car weight dependent fare or complex maintenance calculation scheme.
We register, that the non tangible variables can be either evaluated along the
order scale (first choice, second choice, etc.) or cardinal scale upon assessment with
e.g. values 1,5,10 on a scale 010.
After identifying the key relevant variables the upper or lower limits may set
them jointly e.g. yearly variable costs of bridge maintenance can not exceed
100,000 US$ or individually, allowing the tender management team to fine tune
the evaluation criteria.
The analysis of the make or buy criteria (see Table 4.1) allows to determine the
next following procedure:
Select Tendering Procedure

In the following considerations the rules of the World Trade Organization will be
taken under considerations. The signatures of the WTO plurilateral trade
agreements (Appendices IIIV) agree to handle their procurements in accordance
to the agreed rules. Governmental spendings contribute 1015 % of GNP. There-
fore, they are relevant stimulant of the global economy (WTO 2013). Majority of
public founded entities beside the governments comply to the WTO rules, too. The
limitations and practice evaluation may be found in Evenett and Hoekman (Evenett
and Hoekman 2006).
The procedures adopted by WTO are worthy to be applied also in private sectors
as they proved to be efficient, neutral and conclusive; the rules in private sector may
be set without the restraints of WTO agreements.
The GPA (WTO GPA 2013) foresees three tendering procedures:
(a) Open tendering procedures, unrestricted, where any supplier may submit a
tender,
(b) Selective tendering procedures where selected suppliers are invited to submit
the tender.
(c) Limited tendering procedures (extensions to the contracts awarded according to
procedure a or b, exclusive rights, urgency, innovations, absence of tenders in
procedures a. or b., commodity market, exceptionally advantageous conditions,
results of design contests).
In 2006, after accepting several provisions to GPA, in particular in Doha
Development Agenda, (Wunsch-Vincent and McIntosh 2004)
(d) The electronic bidding process has been adopted. Quotations in reverse auction
lower the prices on-line, the lowest bidder is awarded the contract.
GPA (Article XIV) admits in selective tendering as well as in other forms in
case, when no obviously most advantageous tender may be selected, to conduct.
(e) The negotiations. However, they shall be focused on identifying the strengths
and weaknesses of the tenders, not on the prices.
09:20 Methods 93
Most countries adjusted their national laws to accommodate the above

procedures and simultaneously regulating the procurement in the areas below the
threshold values of WTO (e.g. GSA, DoD, NASA FAR 2005; Sejm polski UPZP
2013; Schweizerische Eidgenossenschaft, BoB 1994; Thailand PMO 1992).
(f) Dialog with potential tenders. The unclear issues are mutually clarified. The
dialog shall secure the GPA rule of transparency. The tenders are subsequently
invited to submit their offers. Applied in the USA to single source contracts and
in Mini Bids (Phillips 2004).
(g) The negotiations of contract conditions with invited tenders. Usually the mini-
mal number of competing tenders is required
(h) Free hand contracting. Selected supplier is invited to negotiate the prospective
contract and submit and negotiate the offer during the negotiations. Applied in a
sole source contract and preferred sources in the USA (Phillips 2004)
(i) Price inquiry. Applied mostly to commodities.
(j) Multiple awards. Applied among others in the USA when it is the most practical
and economical alternative, in particular to promote the small business partici-
pation in the governmental contracts (Phillips 2004).
World Trade Organization (WTO).

(WTO 2013)
On 15th of April 1994 vast number of countries signed the preliminary
agreements. The so called Uruguay Round 1995 established the World Trade
Organization (WTO). WTO, domiciled in Geneva, Switzerland is since
1.1.1996 in force.
The relevant Agreement on Government Procurement (GPA) was already
negotiated during the Tokyo Round and entered into force on January 1981.
The agreement in its present version negotiated in the Uruguay Round, has
only 28 members (not all WTO countries), therefore it is an attachment to the
WTO Agreement.
The basic objective of the Agreement is to guarantee fair and non-
discriminatory conditions of international competition through transparency
of all public spending.
The threshold value for procurements which subject to the Agreement is
currently 130,000 so called SDR (Special Drawing Rights) SDR were created
by the IMF (International Monetary Found) and allocated to the member
countries proportionally to their IMF quotas (IMF 2013). The quota for
construction works is five millions SDR. One SDR is currently (2013)
1.154190. Euro or 1.537040 UCS$.
The organizations issuing the tenders in the member countries are obliged
to award the tender to the lowest bidding or most advantageous bidder, who is
capable to realize the tender according to the evaluation done by the tender
issuing organization.
There are other ongoing works on transparency and service procurement at
WTO.
Tender Management Team

Tender management team does not necessarily have to be composed of project
teams members only. Neither WTO nor national legislatures prescribe the teams.
The experience from the tenders managed by the author indicates the optimal tender
management team to include the following competences:
1. Project manager, responsible for later Outputs
2. Public procurement officer or layer representing the management of the procur-
ing organization
3. Responsible for the procurement application
4. Competent in the evaluation of the procurement solution
5. Sparring partner from the project core team
6. Documentalist, Project Management Office
7. Responsible superior in the purchaser or project management organization
(optional)
The total number of persons shall not exceed seven to warrant the efficiency of
the team (see Chap. 15 22:00 Team Management: TM).
Award Algorithm
The evaluation of tender in any of the above described procedures follows two
steps.
1. Evaluation of the eligibility of tender.
Here the criteria, advisably set in accordance with the WTO rules, can lead to
only binary decision: comply or not comply. In public procurements typically these
are on-time submission, the formal authorization to the business activity in a given
area, regulated relation to the tax office, social insurances, sometimes clear criminal
record in respective area. It may also demand the proof of financial or technical
capability to deliver. In a selective procedure can this be done in the primary
qualification of the bidders; in other procedures upon reception of the offer.
2. Evaluation of the value of tenders.
WTO article XIII, P.4 b admits the awarding of the contract either based on
(WTO GPA 2013):
Lowest Tender meaning that the basis for awarding contracts is the lowest
price among the tenders. It is applicable to the commodities and very good
specified procurements, or
Most advantageous, in the USA known as Best Value offer, which optimizes
quality, cost and efficiency, among responsive and responsible bidders. Such
basis shall reflect, wherever possible, objective and quantifiable analysis. (Phil-
lips 2004).
In Staffordshire County Council approach the best value is a ratio of costs and
quality (Staffordshire County Council 2013). The result is given by the weighted
and normalized approach:
09:20 Methods 95
Ratio: Cost/
Quality+Cost
70%
50%
40% Cost/Quality 40/60 Cost/Quality 50/50
Bottleneck Strategic
e.g. partnering e.g. strategic
High arrangements, limited partnerships, high
Risk supplier number, value goods critical
critical to business to business
Ratio: Quality/
Cost/Quality 70/30 Cost/Quality 70/30
Quality+Cost
Routine Leverage
e.g. continuous high e.g. collaborative/
Low volume orders of corporate
Risk commodities and contracts, high 30%
50%
consumables volume routine items 60%
Low Value High Value
Fig. 4.4 Suggested cost/quality ratios (Staffordshire County Council 2013)
Best value ratio costs * costs spectral + ratio quality * quality.

Ratio is the weight usually expressed in percentage.
Costs spectral and the quality are normalized to values between 0 and 1.
Cost spectral is the positioning of the analyzed tender cost among other tenders.
In section 09:32 Evaluation Scales hereafter, the applicable calculation schemes
are presented.
Depending on the project type and risk Staffordshire County Council [ditto]
suggests the relations between the expected cost and quality ratios in tender
evaluation as shown in Fig. 4.4. (e.g. Costs to Quality ratio 40/60 in bottleneck
supplies):
Certain difficulty poses the cost evaluation. In the intention of purchaser is to
include all costs incurred by the tender (product life cycle costs or total costs of
ownership, see section 09:31 Content of Invitation to Participate or Call for
Tenders hereafter).
However, in the estimation of ex-ante transaction costs only best practice
approach is feasible, thus subjective to whatever estimation. To warrant equal
treatment of all tenders and justified award, the author recommends to split the
costs into two groups:
(a) Costs which are measurable, both fix and variables, transaction and ex-ante
transaction, to be specified by the tender and evaluated in the cost spectral.
ratio costs * cost spectral ratio fix costs* fix cost spectral +
+ ratio variable costs* variable costs spectral
whereas ratio costs ratio fix costs + ratio variable costs
(b) Estimated project and later ex-ante costs, in thoughtful evaluation of items,
which are solution independent and can be equally calculated in all tenders, and
the tender specific items, which shall be with best possible objectivity assessed
and included in the quality part of evaluation of each tender.
ratio quality * quality ratio fix same costs* fix same costs +
+ ratio variable same costs* variable same costs +
+ ratio fix estimated costs* fix estimated costs +
+ ratio variable estimated costs* variable
estimated costs +
+ ratio other quality* other quality
whereas ratio quality ratio fix same costs+
+ ratio variable same costs+
+ ratio fix estimated costs +
+ ratio variable estimated costs* +
+ ratio other quality
Other quality criteria shall be primarily derived from the technical

specifications. In the same weighting scheme as above, the performance,
qualifications, quality of supplies, design alternatives, safety or environmental
aspect, but also time and other issues as national preferences, may be taken under
considerations (e.g. Scott 2006; Thailand PMO 1972).
Tender Time Schedule

In the awareness of the work to be done in the tendering process and the compliance
with GPA rules, the following heuristically set time estimations shall be taken
under considerations in the project time schedule:
(a) Procurement Planning Process (Table 4.2)
(b) Select Suppliers Process (Table 4.3)
The procurement preparation and planning process is not a fast track exercise:
somewhere between 6 months and 6 years shall be taken into consideration during
the project planning. And yet, the delivery time starts first with the contract signing
. . ..
09:20 Methods 97
Table 4.2 Time estimation for the procurement planning process

No. Activity Best case time (days) Worst case time (days)
1 Develop procurement objectives 40 1,000
2 Obtain purchaser/superior acceptance 1 60
3 Decide make or buy 7 60
4 Select tender procedure 7 40
5 Select tender management team 2 40
6 Elaborate tender time schedule 10 30
Total procurement planning process 68 1,290
Table 4.3 Time estimation for the select suppliers process

No. Activity Best case time (days) Worst case time (days)
8 Prepare and issue the call for tenders 5 30
9 Select the potential suppliers (optional) 25 10 25 60
10 Do changes due to challenges (optional) 7 20 7 20
10 Wait due time for bidders to submit offers 7 40
11 Evaluate the offers 7 180
13 Time for challenges of award 7 30
14 Final contract negotiations and signing 1 30
Total select suppliers process 85 482
During this process, considerable resources may be bound: somewhere between

60 and 1,000 Workdays of the tender preparing organization shall be calculated and
added atop of the procurement costs.
If the procurement plan and the expected primary outputs are acceptable, the
subsequent sub-process of supplier selection may start.
09:23 Select Suppliers
Select suppliers sub-process may take somewhere from 3 months to 4 years (see
section 09:22 Plan Procurement above).
In some organizations it takes several weeks to collect all the necessary
acceptances for call for tenders or an invitation to tender only.
All call for tenders shall be published to attract possibly vast number of bidders.
If the WTO/GPA threshold value is exceeded, it shall be published in one of
publications listed in the attachment to this agreement.
Whenever the selective tendering procedure is chosen, the WTO/GPA member
countries are obliged to publish the awarded along this procedure contracts exceed-
ing the threshold values in one of the acknowledged in the appendix to the GPA
Select Suppliers
Sub-process
Prepare and issue

invitation
or call for tenders
Yes
Selective Tendering
Select bidders
Procedure?
No
Wait the due Initiate

time for offers challenge processing
procedure
Yes
Any Challenges? Challenge Yes
successful?
No
No
At least No
one acceptable offer?
Yes
Evaluate, Initiate
obtain acceptances challenge processing
and publish choices procedure
Yes Yes
Any Challenges? Challenge successful?
No
No
No Contract Indicate
with selected bidder change necessity in
signed? the procurement plan
Yes
Select Suppliers
Sub-process
End
Fig. 4.5 Select suppliers sub-process
publications. There is a minimum time of awaiting for the responses to the invita-
tion in dependence of the threshold value of 5 respectively 30 days.
Time for tender submission in most cases should not be shorter than 5 days
below and 40 days above the threshold value. Usually it is shorter for the tender
submission in selective tendering procedure and in case, when advanced informa-
tion about the planned call for tenders has been published.
The complete sub-process of selecting suppliers is given in Fig. 4.5.
An invitation to tender and call for tenders may be challenged as to:
09:20 Methods 99
Tendering procedure (challenger considers it not appropriate)

Technical specifications (e.g. not functional, brand naming, product specific,
beyond the target)
seldom in:
Eligibility Criteria (mostly classification issues in specific procurement
programs, financial demands or too broad law obedience demands)
WTO/GPA, Article XX, demands from the membership countries to establish
the domestic bid challenging systems (WTO 2013). In the USA these are the
procuring corresponding area agencies, the GAO Government Accountability
Office and procedures (US GPO 2009). In Poland it is the Krajowa Izba
Odwolawcza and law regulations (Sejm polski UPZP 2013).
Formal protests, even if reported firstly orally, have to be submitted in written
form within, in most cases, 5 working days (7 calendar days) from the relevant
publication to the corresponding national regulator bodies.
The solicitation is taken within 10 days by the authority named in the procure-
ment and may be again challenged by the procuring organization within the set time
limits (e.g. 15 days in case of Polish law ditto Art. 189.P1).
Still the challenging party can escalate the protest within the few days (seven in
case of Poland) to the next level mostly it is the claim at local court. The court has
usually 30 days to decide upon the claim. (e.g. Sejm Polski 2013) In several
countries the proximity to the reason of claim, yet without formal time limitation
in particular as far as the procuring governmental agency is involved, allows all
involved parties, bidders as well as procuring organization to rise the claim.
However, the policy e.g. in the USA, is to engage the involved parties firstly in
so called ADR Alternative Dispute Resolution, before the court is involved (e.g.
GSA, DoD, NASA FAR 2005).
Changes resulting from the successful challenges call for ex-tended duration
times of call for tenders or invitations; usually not shorter than 10/20 days (e.g.
Sejm polski 2013).
If all challenges are finally resolved the submitted offers are to be evaluated
against the budget, foreseen by the procuring organization. The laws in majority of
countries allow to cancel the tendering process if all offers exceed the foreseen
budget.
After successful pass of this step, the evaluation according to the selected and
published algorithm (see section 09:22 Plan Procurement) may follow. In princi-
ple, the list of the selected suppliers ranked according to the evaluation results does
not need to be agreed upon with any further persons. In praxis, the evaluation team
acts on behalf of the person responsible for the procuring organization. Therefore,
the results of the evaluation need to be accepted by the superiors from the purchas-
ing and/or procuring organization. This may take several weeks in a complex
project.
Agreed results have to be published according to the same rules as in case of the
call for tenders/invitations.
They challenges may be submitted and are resolved in the same procedure as
described above. Again weeks and months may pass away.
The national laws put a limitation on the duration of the time elapsed from the
tender collection and final contract awarding. Usually it is the time of 3060 days.
However, the authors praxis in several countries indicates, that every second
process takes longer and the bidders are requested to prolong the validity of their
offer as well as of bid bonds.
The contracts are basically to be signed according to the proposal published in
call for tenders. In several procurement procedures, the negotiations still take place.
Important aspects are regulations and procedures regarding the changes, extensions
and adaptation of the contract during the contract administration (project life cycle)
and contract management (post-project maintenance). They should be included in
the contract proposal published with the call for tenders already.
If the awarded bidder, due to e.g. changed business conditions over the long time
of the procurement process decides to withdraw, basically the contractual
negotiations begin with the second ranked bidder. In some cases, it is, however,
advisable to re-evaluate the offers and verify the reasons of withdrawal. In any case,
the final awarding is to be published and subject to the same challenging procedures
as all other aspects of the procurement.
Successful signing of the contract finishes this sub-process.
09:24 Administer Contracts
Contracts are short or longer term relationship between the three parties: the
procuring organization, the purchasing organization and the supplier.
The sub-process regulates the concurrent progress in the contract realization and
all the relevant changes with respect to the contract adjustments (Cibinic et al. 2006,
page 1 cont.).
CMMI for Acquisition, as well as CMMI for the Development and CMMI for
Services Standards encompasses all issues of project-wise contract elaboration and
broad approach to contract execution, however, it does not provide the practices for
contract administration, which may be aligned with the ISO 21500:2012
(Gallagher et al. 2011; SEI 2010).
Saxena (Saxena 2008) suggest to deploy the Six Sigma basic approach of
DMAIC (Define, Measure, Analyze, Improve, Control). Define is handled
according to the adopted ISO 21500:2012 standard as a part of the Plan Procure-
ment sub-process (see section 09:22 Plan Procurement). The other four DMAIC
tasks are executed in various other L-Timer1 processes.
The Administer Contracts sub-process, dedicated solely to the issue of contracts
handling, is illustrated in Fig. 4.6.
Irrespectively of the size of the project a role of contract administrator is helpful
to handle this sub-process (US GPO 2009). The choice of the procurement officer
from the procurement team as a subsequent contract administrator secures the
efficient know-how transfer and continuity.
The Team Management Process (see Chap. 15, 22:00 Team Management TM)
supports the development of mutual trust, confidence, cooperation and good faith,
09:20 Methods 101
Fig. 4.6 Administer

Administer Contracts
contracts sub-process
Sub-process
Contract No Assign or Change

Administrator Contract
in force? Administrator
Yes
Assure common
contract interpretation
& supplier collaboration
Assure payment plan

execution acc. to the
elaborated EV and QM
No
Changes?
Yes
Assure rules and lawful
obedience
No
Claims?
Yes
Prepare and execute
claims
Prepare and sign the

sustainable contract
management
Select Suppliers
Sub-process
End
between all the parties, needed for common interpretation of the contractual
agreements and to resolve all the unspecified issues in the original contract as
well as all changes during the contract realization.
The Earned Value Management process (see Chap. 5, 10:00 Earned Value
Management) delivers the current assessment of value reached at the specified
time. From Quality Management (see Chap. 6, 11:00 Quality Management)
comes the assessment if the agreed standards have been met. Jointly it allows to
evaluate if the contractual obligations are met by the supplier and to execute the
contractually agreed payments. This sub-process manages all financial relations
between the parties: also performance bond and claims.
The financially relevant changes demand particular attention for their confor-
mity with the law and rules adopted during the contract awarding.
Table 4.4 Procedural and general information about the scope (expected output) in call for
tenders/invitations
Block Subject Id. Contents
P Procedural information P1 Issuer of the call/invitation
P2 Purchasing organization
P3 Tendering procedure
P4 Deadline for submissions
P5 Place for submissions
P6 Other conditions like multiple
offers
P7 Admission of consortia
P8 (Option) Bid bond
P9 (Option) Protest/challenge
procedure
P10 Other conditions like multiple
offers
G General information about the scope (expected G1 Subject (expected outputs) and
output) timing
G2 Evaluation criteria
G3 Contract proposal
G4 (Option) Follow-up orders
Table 4.5 Information contents of invitation or call for tenders-eligibility and technical
specifications
Block Subject Id. Contents
E Eligibility criteria E1 Legacy of business activity
E2 (Option) Regulated taxes
E3 (Option) Regulated social insurances
E4 (Option) No relevant law perjury
E5 (Option) Technical capability
E6 (Option) Financial capability
T Technical specifications T1 Quantity/quality criteria
T2 Time schedule of deliveries
Finally, the sustainable contract management past the project life-cycle shall be
prepared and signed before project closes.
09:31 Content of Invitation to Participate or Call for Tenders
An invitation to participate in the tender, or directly call for tenders, shall provide
four blocks of information as shown in Tables 4.4 and 4.5 (reduced information for
the qualification for of the bidders in the invitations).
09:32 Evaluation Scales
The following scales may be used in evaluating the offers (Schreiber 2000):
Nominal scale: applicable particularly in evaluating the eligibility criteria and
critical requirements. The decision is binary: either criterion is met (fulfilled) or
not (not fulfilled).
Ordering scale: places the results in an order: first choice, second choice, third
and so on or comparison results: greater than, equal, smaller than. Applicable in
complex subjective evaluation e.g. in combination with Delphi procedures. Due
to the subjectivity seldom applied.
Cardinal scale: the fulfillment of each criterion is placed on a scale, applied to all
offers and normalized between several criterions. The highest score wins the
award of a contract. For example three criteria are weighted: 0.5, 0.2, 0.3 each.
Each criterion is applied with a fulfillment scale between 0 % and 100 %. First
bidder fulfills the criteria in a sequence: first in 35 %, second in 90 %, third one in
80 %. Second bidder correspondingly: 50 %, 75 %, 60 %. The final evaluation is
as follows:
Results first bidder 0.5*0.35 + 0.2*0.90 + 0.3*0.80 0.175 + 0.18 +

0.24 0.595
Results second bidder 0.5*0.50 + 0.2*0.75 + 0.3*0.60 0.25 + 0.15 +
0.18 0.58
In this example the first bidder reaches higher score and qualify for the award of
the contract. Both the nominal and ordering scales may be converged to the cardinal
scale as, as a matter of fact, happens in most cases known to the author.
09:33 Price/Cost Calculation Spectral Schemes
Procuring organization may choose between the unlimited and limited price spec-
trum of the offers taken into consideration.
Unlimited Price Spectrum

In case of the unlimited price spectrum the evaluation of the tender on the cardinal
scale between the lowest (maximal normalized value 1) and the highest priced
tender (minimal normalized value 0), is giving by the equation:
PE given tender H GT=H L

where :
PE : Price evaluation of a given tender
H : Highest price of any tender
GT : Price of given tender
L : Lowest price of any tender
Procuring organization may limit the price spectrum of the tenders taking under
further considerations to price range between the lowest price and its double value.
In this case the following price evaluation equation applies:
PE given tender 2L GT=L

where :
PE : Price evaluation of a given tender
GT : Price of given tender
L : Lowest price of any tender
It shall be noted that in this case all the tenders, which prices lay beyond the
double lowest price are not taken under further consideration.
09:34 Contract Components
The Uniform Commercial Code UCC Article 2 Part 3 in the USA (American Law
Institute 2011), the Obligationenrecht in Switzerland (Schweizerische Eidgenos-
senschaft 1911; Widmer 1998), Prawo Handlowe I Gospodarcze (Sejm Polski KC
2013), just to name few, regulate the basic components of the commercial contract
of sale, as given in Table 4.6.
09:40 Templates
One of the most demanding challenges in procurement management is the request

for clarifications and changes upon publishing the call for tenders. The WTO-
conform treatment of all bidders demands answers to be elaborated accordingly
to the targets of the purchasing and procuring organizations with full law and rules
obedience and distributed equally to all, who asked respectively submitted change
requests. The general public has to be informed through the same channels as
through which the original call for tenders has been issued. A record of the request
09:40 Templates 105
Table 4.6 Contract components

No. Content Description
1 Title Gives basic indication of the transaction object
2 Type of contract Describes if it is one time delivery, service, maintenance,
main or sub-contract
3 Contract parties Name and describes the contract parties with the names and
function of responsible persons
4 Documents list Defines the sequence in which the documents enclosed in
the contract are to be taken under consideration
5 Purpose Purpose of the contract
6 General obligations Obligation of the seller to transfer and deliver and that of the
buyer to accept and pay in accordance to the contract
7 Goods to be sold Possibly exact description of the goods to be transferred and
delivered by the seller
8 Time, form, place and Exact definition where, how and when the goods shall be
acceptance of the supplies delivered and under which acceptance criteria will be
considered as transferred
9 Price to be paid Description of the payment conditions and forms of payment
by the buyer
10 Risks allocation Allocation or division of risks among the parties, ownership
restrictions and confidentiality
11 Expressed Warranties Warranties expressed by selling party in the offer or during
the negotiations
12 Implied Warranties Warranties resulting from legal obligations and contract
purpose
13 Damages Regulates the responsibility and coverage of damages,
which may occur during the contract realisation.
14 Legal responsibilities Regulate the responsibilities for legal occurrences, copy
rights etc. before, during and after delivery
15 Contract changes and Define under which conditions and how the changes and
extensions extensions to the contract may be adopted.
16 Contract validity Defines the time period of the validity of the contract and
rules for its termination
17 Jurisdiction Place the contract within the subsidiary law and place of
jurisdiction.
and the taken actions supports the correct handling. Table 4.7 exemplifies such a
document.
The final results of the tender evaluation have to be documented in a formal way,
which can withhold a juridical trial. Suggested trace of the procurement process
results is given below (Table 4.8).

Source A. Sent for
and procurement B. Sent for Change upon
Date of return objectives action legal/rules answer from
No. reception address Request by/on? clarification? A. and B.? Ok?
1 . . .. Text 1
2 . . .. Text 2
3 . . .. Text 3
4 . . .. Text 4
99 Deadline for
inquiries/
change
requests
100 Publication List of Final texts
date recipients

Evaluation Evaluation
No. Tender Date of reception Eligible score documents Rank
1 . . .. . .. . .. . .
2 . . .. . .. . .. . .
3 . . .. . .. . .. . .
Choice
Published
on
Challenges Decision Documents Action
1 . . .. . .. . .. . .
2 . . .. . .. . .. . .
09:50 Activities and Primary Outputs
Activity
None
Primary Outputs
None
Activities
Elaborate desired Output from the project objectives
Elaborate deliverables and time schedule of procurement
09:50 Activities and Primary Outputs 107
Estimate costs of planned procurement

Decide make or buy
Select tendering procedure
Select tendering team
Elaborate award algorithm
Elaborate tender time schedule
Obtain acceptances
Primary Outputs
Accepted procurement Objectives
Accepted procurement Plan
Activities
Prepare and issue invitation to tender or call for tenders
Select bidders if selective tendering have been chosen
Execute challenge processing procedure if needed
Collect in due time offers
Evaluate offers, choose the awarded ones, obtain the acceptances and publish the
choices
Execute again the challenge processing procedure if needed
Negotiate and sign the contract with awarded bidder
Re-enter the evaluation and subsequent new choice if the first choice contract
signing unsuccessful
Choose contract administrator
Assure common interpretation of contract and supplier cooperation
Collect the data from EVM and QM to decide and execute the payment plan
Secure the lawful and conform with the rules contract changes
Prepare and execute claims
Prepare and sign suitable contract management agreements
Primary Outputs
Publication of tender and invitation to tender (where applicable)
Evaluation of bidders and choice of awarded ones
Handling of all challenges and publication of the results
Negotiated and signed contract
Administered contract during project life-cycle
Lawful and conform with the rules contract changes
Contract execution controlling and payments
Executed claims if applicable
Activities
Secure the lawful and conform with the rules contract changes
Prepare and execute last project claims
Prepare all relevant information for contract management after project closing
Prepare and sign suitable contract management agreements
Primary Outputs
Lawful and conform with the rules contract changes
Contract execution controlling and payments
Executed last project claims if applicable
Summary of contract relevant information from the project life-cycle
Signed agreements for sustainable contract management after project closing.
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Philadelphia
Cibinic J, Nash RC, Nagle JF (2006) Administration of government contracts, 4th edn. Wolters
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10:00 Earned Value Management: EVM
5
Quick Look
What Is It?
Earned Value Management EVM firstly elaborates an estimation of the actual
project progress and than the corrective measures to ensure that the final end
product will be reached within the deadlines and scheduled budget.
Who Does It?
In small projects, the project manager is the one to control the progress, to elaborate
the measures and to manage the earned value. In projects staffed with few other
employees, it is suggestible to charge the project comptroller or project manage-
ment office with the responsibility for this process.
Project scopes are set with time constraints and financial goals. Only if we measure
the progress we can manage the project. EVM provides an early warning of
performance problems and helps teams to focus on project progress. It secures
that the project scopes do not creep and usually serves to satisfy the stakeholders.
What Are the Steps?
First we have to estimate where we are in the project: at a given time point we shall
evaluate how much money have been spent and what has been really reached. Than
we compare that with a plan and consider appropriate measures: preventive actions,
changes, problem solutions.
What Is the Work?
Most important is the estimation of the actual project situation and prognosis of
further progress both allow project manager to grasp the suitable actions to secure
that the project delivers along its goals. Moreover, the progress reports serve
stakeholders and team members.
Honesty first. Correct assessment of the results and exact financial report secures
right performance estimation. Use the whole spectrum of all corrective actions in

112 5 10:00 Earned Value Management: EVM
any process of your project management. Be convinced that they are effective. Bear
project scope always in mind.
Process
Earned Value Management process (Fig. 5.1) estimates the actual situation in a
project and forecasts the progress. Upon deviations corrective actions are to be
taken. Gained knowledge shall be processed.
10:10 The Goal of Earned Value Management
Planning & Scheduling process set the project scope to be reached with a given
quality within planned costs and time schedule.
Earned Value Management EVM shall provide exact estimation of the actual
progress at any given time with regard to the project scope and planned scope and
forecast further progress in the project, based on these performance estimations.
Any deviation from the schedule, which cannot be absorbed in regular project
course, shall lead to appropriate measures: Change Management Process or Prob-
lem Management Process.
Reports from EVM allow project manager and his team to detect early perfor-
mance deviations, keep track on the project scope and provide the stakeholders with
the information about the project progress.
10:20 Methods
The ISO standard defines three separates processes: 4.3.24. Control Schedule, 4.3.27.
Control Costs, and 4.3.5. Control Project Work. Beside there is a process 4.3.14.
Control Scope, which refers rather to the controlled change in the scope of the project
(change with a consequence in the Process of Planning and Scheduling) (see Chap. 2,
07:00 Planning & Scheduling: P & S). In the authors view the three elements: project
objectives (scope + quality), schedule (time) and costs has to be evaluated jointly, as
only joint evaluation se-cures the correct assessment of the project progress. We may
expect, that this is the intension of the Process 4.3.5 Control Project Work, reading
the description of this process (ISO 21500:2012 2012). Concluding our Earned Value
Management Process covers (ISO 21500:2012 2012):
4.3.5. Control Project Work
4.3.24. Control Schedule
4.3.27. Control Costs
10:20 Methods 113
PS, EVM, KM,

PRM, CM, RM
10:00
Actual Time & deadlines
status estimation
estimation
Achieved results
estimation
Forecast
Financial
estimation
Yes
As planned?
No
Yes
Acceptable?
No
Yes
Changes? CM
No
Precautions
Precautions No
PBM
effective?
Yes
Lessons Yes
KM
learned?
Fig. 5.1 Earned value process EVM
10:21 Interrelationship Between the Project Scope Objectives
The project scope target values are measurable parameters of the output, time and
costs and can be presented in the form of the iron triangle (see Chap. 2, 07:00
Planning & Scheduling: P & S, section 07:21 Project Goals and Project
Objectives, Fig. 5.2):
Output O
Goods, Services,
Quality
Time T Costs C
Duration, Deadlines Emplyees, Tools,
Resources
Fig. 5.2 Project scope objectives
Rp Ra
Planned triangle
Tp Cp
Triangle of the actual state
Ta Ca
Fig. 5.3 Planned triangle and the triangle of the actual state
All project objectives in this triangle are interdependent. Any change in any of
the project objectives causes a change in at least one other objective, too.
Cutting time, e.g. by shorter deadlines, has influence on the results ( forcing e.g.
reduction of the targeted features or quality) and/or on the costs (e.g. increase due to
overtime payments). Cuttings in the project budget (cost) usually lead to reduction
of the targeted results, and so on.
In the process of project realization there are certain discrepancies between the
plan and the actual state. The discrepancies within the particular project scope
objective, cause deviations in other, finally forming another triangle, which differs
from the planned triangle as shown in Fig. 5.3. The above discrepancies have to be
analyzed and certain countermeasures should be applied in order to minimize an
impact on the project scope and to achieve the planned project scope objectives as
close as possible (Lewis 2011; Motzel 2003; Felske 2003; Szyjewski 2001).
10:22 Analysis of Actual Project State
Assessment of Results
Assessment of the actual state of the project shall cover all activities of the project
team members within the main project processes of the results delivery, their
validation and adjustment of the business processes, as well as all supportive
10:20 Methods 115
processes, expenditures for quality assurance, risk management, training and so on.
The assessment may be carried out through:
Helicopter estimation of the particular project part
Control of the project status upon reaching a milestone determined in the process
of 07:00 Planning & Scheduling P & S,
Verification of the consistence between the results of the delivery and validation
processes
The necessary data can be elaborated from the following sources:
Checklists of control activities
Individual consultation
Meetings of the project team
Reports
Experts appraisals
Control processes
Tests
Reviews
Testing
Testing is validation of the achieved results against the earlier drawn up
specifications. The validation may be performed on different levels: components,
partial results, overall project results (compare V-Model, Chap. 2, 7:00 Planning &
Scheduling). Testing is the basic method of the validation process in a project
(Hansen and Neumann 2001).
Check-up
Check-up consists of measurements, analysis, quantification of project results
feature, as well as the comparison of results with reference parameters. The aim
of all those activities is statement if the set requirements will be accomplished with
reference to each and every project results feature, or if consistence has been
achieved (Ottmann 2003).
Check-up Versus Testing

Check-up is mostly an un-continuous action providing an answer, if a particular
feature is consistent/non-consistent/or has a particular value. Testing is usually
related to a continuous process like e.g. validation and delivers not only the
evaluation of the project results, but also allows to assess and improve the involved
processes.
Assessment of Time and Deadline Course

Assessment of time and deadline course is basically an analysis of the past in
relation to the planned project time schedule. One or more of the following
techniques may be used simultaneously:
Relationship diagram,
Time schedule (e.g. project MS)
Milestone trend analysis
Particular attention shall be paid to all interrelations between individual project

activities. Any delay in one may not necessary lead to an equal delay in the overall
chain of activities. Contrary, even a small change may cause major re-shake in the
whole network of interrelated operations. In case of doubts four eyes principle
might be helpful.
Assessment of actual project costs shall comprise all components and all
activities related to project scope realization, such as:
Personnel costs
Financial expenditures for investment and material re-sources
Service costs for the supporting units
Decision concerning financial expenditures relevant in the assessment of the
earned value in the project
Present earned value, acquired in the project
Estimation of own costs (see section 10:35 Cost Driven Management Cost
Oriented Procedures)
Analysis of project financial sheets
Control of entries in accounting department
Analysis of discrepancies
Correct assessment includes both the costs already charged to the project as well
as the costs already incurred but not charged yet (e.g. ordered future deliveries from
sub-suppliers).
10:23 Forecast of Further Project Progress
A vital project management goal is possible early identification of the deviations

from the plan and taking suitable pre-cautionary measures. Past performance
elaborated in the analysis of the actual situation and the comparison with the
original plan, lead to the identification of the reasons of the discrepancies and
allows forecasting further developments of the project. The above refers both to
particular scope objectives of the project (time, results, costs), as well as to their
mutual influence (the magic triangle).
10:24 Analysis of Discrepancies
At this stage a decision concerning further realization of the project must be taken:
Which differences can be absorbed (namely, which differences do not obstacle
the achievement of project scope objectives),
Which differences exceed the capabilities of the project to continue further as
planned (namely, which lead to the change of the planned magic triangle project
scope objectives).
Delimitation of the threshold value between the both classes of differences is
relative and depends on the project and overall assessment by a project manager.
It is recommendable to set this value with project team and let it get approved by the
project supervisory board.
Significant differences lead to changes. Thus, a regular change request with
suitable information should be filed out. Further procedure upon change request is
described in Chap. 9, 14:00 Change Management: CM.
10:25 Precautions
Significant deviation from the plan, leading to the process of Change Management,
generally results in the change of one or more of project scope objectives:
Change of the planned results,
Change of the planned costs,
Change of the planned time.
The simultaneously introduced precautions aim at the reduction of the probabil-
ity of the next, following deviation in the project. Earned Value Management
Process is the only and right process to estimate the effectiveness of the undertaken
counter-measures. In case shall they prove insufficient, a major effort has to be
initiated: we have a problem (see Chap. 7, 12:00 Problem Management: PBM).
This part describes the most effective techniques and tools, which supports the
earned value analysis and Earned Value Management Process.
10:31 Workbench
Setting Workbench for EVM

A right alignment of the results, time and costs is critical in project evaluation.
Most financial management systems allow for a periodical report, usually a
monthly draw. The accuracy may be optimized up to 13 days delay between the
most recent registered entry and available report.
On the other hand, milestones are set along the reasonable and most efficient
realization plan seldom matching the financial reports schedule. The remaining
period between the milestone date and reporting date is frequently a source of
differences in the assessment of the current project scope objectives.
Twofold separation of financial bookings helps to assess correctly the earned
value.
1. Exact assignment of fiscal accounts to project phases, an individual milestone
related accounting periods
Nr Product Start End End Account Schedules

Milestone Account 1 2 3 4 5 6 7 8
1. Concept 1.01.14 30.04.14 31.05.14 700-01
2. Project 30.04.14 31.05.14 30.06.14 700-02
3. Realization 1.06.14 1.08.14 31.10.14 700-03
4. Implementation 1.08.14 30.08.14 31.10.14 700-04
Fig. 5.4 Magic triangle traceability technique
Financial Accounts
We follow here exactly the magic triangle relationship. Each fiscal project account
is associated with exactly one measurable results objective and time to reach it.
Once the foreseen time period elapsed, the results objectives are measured and
the financial results summarized. From that very moment the project team works on
the next part with other results objectives (e.g. next milestone) and all the efforts
and expenditures are booked on another financial account. Figure 5.4 illustrates this
approach.
2. Exact trace of charged expenses in the current report period and future already
committed expenditures.
Financial Tracking
Another source of frequent misunderstandings and incorrect assessments is the
treatment of financial commitments in a project.
Financial systems are retrospective and can track only registered working hours
and billed invoices. Project Management is the only source of correct assessment
what is committed: ordered or already received, but not yet invoiced. That means
that to evaluate correctly earned value, all registered expenditures but also all
already consumed and not yet invoiced services and project contributions have to
be jointly considered.
A suitable approach is to register financial forecast in the period, in which the
charges are expected, irrespectively and in parallel to the actual financial account
balance (Fig. 5.5).
10:32 General Assessment Procedures
Delphi Procedure
Carrying out a survey among experts (see Chap. 2, 07:00 Planning & Scheduling
P & S, section 07:34 Project Cost Estimation) can be also applied to evaluate the
May
Nr Phase End own services investment total
%
Account forecast Account forecast Account forecast Account forecast
1 Concept 30.04 850 1000 - - - 60 850 1060 80

2 Project 30.05 - 400 - 100 - - - 500 -
3 Realization 01.08 - - - - - - - - -
4 Implementation 30.08 - - - - - - - - -
Fig. 5.5 Planned triangle and the triangle of the actual state
actual progress in a project. The method is effective when the complexity of the
projects results or their innovative character demand competences beyond the
capabilities of the members of the project team. External experts help to estimate
the results in a proper way. (Phillips 2010; Cadle and Yeates 2008).
Earned Value Analysis

Analysis of values worked out in the project is carried out independently in three
fields: results, cost and time. The analysis, based on the assessment of the project
processes from the present (actual) perspective, forms a vital decision basis. It sets a
relation between the planned and actual data as well as relation between results and
costs in a given point of time. Proper comparison of the planned and actual progress
is conditioned by a comprehensive assessment of the present situation, as well as
by complete planning processes. The described activities depend on the precision
of approximate values. It refers to both the planned data (see Chap. 2, 07:00
Planning & Scheduling P & S), and the data describing the present (actual) state
which shall be elaborated using the same estimation procedure. This guarantees
correctness of the comparison and further evaluation of the earned value. Other-wise,
there is a need of the assessment of influence (Felske 2003).
The analysis of earned value in the project consists of the following activities:
1. Actualization of the project plan (e.g. with the help of procedure creating the
network of interrelationship). Taking into consideration the actual state and the
remaining planned deliveries, it is possible to estimate the progress index. In
order to do this, it is possible to apply different techniques, e.g. the technique of
milestones, procedure 50/50 or procedure 0/100 (Motzel 2003).
2. Elaboration of the results, which should have been reached at that stage, based
on planned, overall progress estimation. The value of the work, which should
have been done with the corresponding financial expenditure, is the Earned
Value EV. The relation of EV to Planned Costs (PC) to reach these results
gives the so called Schedule Performance Index
SPI EV=PC
Table 5.1 Earned value of project (an example)

The following weeks of project 1 2 3 4 5 6 7 8 9 10
Costs planned in budget cumm. 25 48 75 100 113 122 140 146 149 162
Actual costs cummulated ACC 30 68 103 110 122 129 135 146 147 152
Earned value 20 35 55 96 118 125 130 140 157 170
Indexes of project
CPI 0.67 0.51 0.53 0.87 0.97 0.97 0.96 0.96 1.07 1.12
SPI 0.80 0.73 0.73 0.96 1.04 1.02 0.93 0.95 1.05 1.05
CPI Cost Performance Index (calculated: earned value/actual costs), SPI Schedule Performance
Index (calculated: earned value/costs planned in budget)
3. Comparison of the Actual Costs (AC) in the project with the achieved results
EV. The difference is the so called Cost Variation CV. The relation of EV to AC
determines the so called Cost Performance Index
CPI EV=AC
Example
The monthly budget has been prepared at the amount of 25,000 $ (equal to the
accepted, actual planned costs PC). The realized planned tasks achieved the
level of only 80 % ( assumption). Thus, the Progress Index is 0.80. The Earned
Value (EV) achieved this month can be easily calculated: EV 0.8 25,000
PLN 20,000 $. SPI 20,000/25,000 0.8.
Although the planned tasks has been performed in only 80 %, the actual costs
(AC) of work done so far amount to 30,000 $ ( assumption). With the
extrapolation of the current results, the 100 % task performance would be
connected with the cost at the amount of 37,500 $. In the comparison, it is
clear that there are additional costs (cost variation CV) of 10,000 $
(30,00020,000) and that the project without any precautionary measures will
cause the increase of costs by 12,500 $ ( 37,50025,000) in comparison to the
previously prepared budget.
Graphical presentation of data is useful in data analysis. The preparation of such

presentation can be made easier by the tabular calculation program as exemplified
in Table 5.1.
Figure 5.6 extends the above given example with a simulation of possible several
weeks realization of the project and corresponding figures.
Both graphs indicate certain challenge in schedule and cost management in the
first stage of project (it is visible through both indexes, CPI (with reference to
costs), or SPI (with reference to time schedule)). The value of index 1 denotes
ac-cording to the plan; index higher than 1 better than planned, and index lower
than 1 worse than planned. In the presented example, the increased costs at the
Value achieved in project

Costs (cumulated) 200
175
150
125
100
75
50
25
0
1 2 3 4 5 6 7 8 9 10
Following week of the project
Planned in budget Actual Achieved values
Indexes in project xy
1.20
1.00
0.80
Index
0.60
0.40
0.20
0.00
1 2 3 4 5 6 7 8 9 10
Following week of project
CPI SPI
Fig. 5.6 The example of graphical presentation of earned value with the help of tabular calcula-
tion program
beginning of the project were at the same time connected with lower than planned
Earned Value. In this scenario, the project manager faced the situation, that the
project, without any precautionary measures will be more expensive (see actual
costs) and a significant delay must be taken into account (see low earned value).
The taken preventive measures had a positive influence on the project, allowing
finally to achieve the planned progress (see, the middle part of the project). After a
short problematic period, the project could be finished with a better result than
planned, both in the scope of costs, as well as timing (see also both indexes, which
are higher than 1).
Management by Critical Factor

Management by critical factor bases on earned value and both cost and schedule
performance indexes. Both indexes of the analysis of the achieved values (CPI and
SPI), which track the discrepancies in the plan, are mutually multiplied by them-
selves for each stage. It results in numerical index called the Critical Factor (CF) for
the given stage i (Lewis 2011):
Critical Factori SPI I CPI i

1,6
The need of immediate correction
The value of the critical factor CF 1,4
Check up
1,2
According to the plan
1
Check up
0,8
The need of immediate correction
0,6
0,4
1 2 3 4 5 6 7 8 9 10
Week of the project (stage)
Fig. 5.7 Graphical analysis of the critical factor value
the end of calculation, the numerical critical factors of each stage are compared
with the best case empirical values (see Fig. 5.7). CF value between 0.9 and 1.2 is
considered as acceptable (no need for any immediate corrective action). The curve
drew in Fig. 5.7 corresponds with the values from the example in Fig. 5.6. The
graph clearly shows, that the value of the critical factor of week 2 of the project
achieved a critical dimension. The project works already corrected after the first
week should be stopped (the trend was visible).
Extrapolation of Past Numerical Indexes

Numerical indexes may be taken from the previously conducted and already
finished similar undertakings (e.g. the output of a programmer in lines/hours,
number of clients served daily by a call center agent etc.). The above numerical
indexes should be adjusted to a given project, in which they are treated as points of
reference. The adjustment is necessary, since projects differ in subject, results, time
and costs, have different managers and their partners, have different organization
and different project scopes. The adjustment of numerical indexes is done by
approximate calculations, moreover, as a form of help we can apply estimation
method. In order to make the whole process easier, it is necessary to conduct the
division of projects tasks into possibly small partial tasks, which are assessed
individually. If the numerical indexes have been adjusted to a given project, they
serve as the indicators of early warning about potential deviations in the project.
The indexes are supportive in the analysis of the actual state as well as the analysis
of differences as shown in the above example.
Systems of numerical indexes are based on previous data and experience. Thus,
using them, we must secure that the experience or information involved is valid
for current project and actual conditions under consideration (the basis of
extrapolation).
Forecast Based on the Analysis of Situation Development Options

In this procedure, assuming a certain state as the starting point, we present how a
situation could look like in the future. The situation is a consequence of an assumed
logical course of certain events in a given time space. At the same time, alternative
solutions at each stage shall be considered (critical deliberation). During this time,
certain decisions or activities should be already implemented, verifying past
assumptions and scenarios. On the basis of such information, the possible future
development in the context of potential alternative activities is assessed (Mag 1993).
Let us consider an example, where we have to choose between the actualization
of a system with additional system components and the complete software migra-
tion to an alternative system. The analysis of the first option indicates total costs of
100,000 $ and the time of realization of 1 year. In case of the second option the costs
amount to only 60,000 $, the migration can be done within 4 months, but the new
system will be less effective in comparison to option 1. Final decision has to be
taken with consideration of the overall needs and financial possibilities at a given
moment and cannot be anticipated a priori.
Other Techniques
Besides the above simple yet efficient techniques, there are more complex statisti-
cal processes available for project progress forecast. Among others an exploration
of tendencies, the technique of the smallest squares, exponential approximation, as
well as simple and multiple regression schemes. Due to their complexity and
limited practical usage in connection with approximate values of the progress
estimation in the project they are not further considered here. The readers interested
in the topic can find more information in (Mag 1993).
10:33 Estimation of the Level of Projects Goals Realization
The described below procedures are useful in estimation of the actual state with
reference to the overall planned projects results, progress of priority projects tasks
realization or the analysis of reasons of any discrepancy in a project.
Individual, Group or Team Assessment

The first procedure is set as assessments. They can be held individually, or with
several people at the same time. Assessments held with several people at the same
time have the advantage of judging a situation from different points of view, and all
participants of the assessment can react on particular ideas in the discussion.
However, in a group, we observe the effects of group dynamics, with negative
effect of damping certain persons active contribution. Thus, the form of
assessment: individual or team, has a significant meaning. The participants of the

assessment can include co-workers from the project team, independent specialists
in the field of application or technology, as well as the users of the targeted product.
In order to use the time set for assessment in an optimal way, it is necessary to
emphasize the role of good preparation of participants and the leader of the
assessment in the merits of the discussions. The minutes, notes, and recording of
the assessment can serve as a documentation. It should be noticed that, the
participants of the assessment, in case of their recording, can behave differently,
which can have a negative impact on the final result of the assessment procedure of
the projects state as well.
Testing
Usually, testing is conducted in the process of product development, with the aim of
the measurement of the level of realization of certain requirements set in the
specifications. The tests can be run manually (so the activities are performed by a
human) or in an automatic way (with the use of special programs). In both cases, the
test should not be done by the author or developer of the tested product, but another
per-son, possibly in cooperation with one more person.
Basically, we distinguish two below presented types of tests, however, in order
to run the full test we should consider both of the test to be done subsequently
(Kahlbrandt 2001):
Test of Black Box

The test of black box is a functional test. Functional specifications requirements
which are expected to be newly fulfilled are used to create test cases. The internal
logic and technology remain hidden and irrelevant at this stage.
Test Execution
In order to check the function, we generate test cases out of application specific
parts (e.g. through the creativeness technique or in accordance with Use Cases) and
deploy them in expectance of specific reaction of the product. The test usually
includes particular functions, which are then tested for their completeness. The
correctness of internal product operation is not checked out.
Test of White Box

Unlike the test of black box, the test of white box checks the logic of particular
product reaction or behavior and the legitimacy of particular program steps, which
might have been initiated.
Error Search
Test Execution
In case of the search for possible errors, we prepare a record of potential errors or
situations leading to errors, using the creativeness technique, intuition, experience
or perceptive-ness, and test scenarios. Characteristic gaps or obvious de-tails in
specification and test scenarios, which have not been predicted earlier in the
specification phase, but which might pop up during the design or realization can
serve as the starting points. After the test scenarios have been prepared and essential
procedures have been realized, the project results are tested. The results will be
compared to the specifications and expected error list. The differences in the
achieved results point to errors.
Random Data
By analogy, just as in case of the procedure of error searching, the test subject is
tested with the use of random data or random situations. The results of these tests
are gathered together with random trigger situation/data and build test cases used
further in the test.
CauseEffect Diagram
In cause-effect diagram all effects are linked with the corresponding causes. This
way, it is possible to have the overview of feasible relationship between several
causes and/or effects, which is helpful e.g. in the process of errors identification.
Test Checklists
Test checklists allows for the assessment of the progress in the project based on the
standards of a given enterprise, with the use of a catalogue of preprepeared
questions like e.g. Has project organization been prepared?, Has the load test
been done? etc. (Lent 2003).
10:34 Time Control Procedures: Trend Analysis
All tasks are attributed certain execution time and put into logical sequences in the
planning and scheduling process (see Chap. 2, 07:00 Planning & Scheduling: P & S).
Dynamic developments lead to modifications of these values and in consequence
the interrelationship of the individual tasks among themselves. By assessing the
results reached at certain stage we search for the tool to extrapolate project
development in the time scale.
Milestone Trend Analysis

The Milestone Trend Analysis MTA provides an overview of the project develop-
ment in time, based on the assessment of time consumed to realize particular task
and the interrelation between the tasks. MTA can be performed only if one can
possibly exactly determine the result and time needed to execute this task. An
analysis of the time dependencies in inter-relation network leads to relatively good
picture of the project development over the time. Usually good base constitute
milestones set in project with well-defined deliverables and costs. Therefore, the
technique under discussion, although general, is widely known as Milestone Trend
Analysis MTA. (Felske 2003).
Dates of assessment
1.06 1.08 1.10

Deadlines of milestones
1.10
Legend
1.08
Milestone 3 : in plan
Milestone 2 : earlier deadline
Milestone 1 : delay
1.06
Fig. 5.8 The milestone trend analysis (MTA) example
Milestone Trend Analysis is executed in the following steps:

Verify interrelationship network between the tasks and set new interconnections
where justified
Identify exact results and the deadlines bound with them for each task.
Group the tasks around major decision items milestones
Verify cyclically (e.g. weekly) the deadlines of all mile-stones
Assess the changes in each tasks execution time and assess against deadlines and
consequences in interdependent tasks
Draw a graph of the results on the MTA chart
Review all differences,
Evaluate the effects and potential corrective measures.
Milestone Trend Analysis Diagram

Based on the above considerations we may attempt to present graphically the MTA
results (see Fig. 5.8). In order to reach this we have to perform the following
activities:
The graphical scheme has the form of a right-angled triangle, between two time
axes. There are no restrictions on the time scale nor on the amount of time
displayed beyond the requirement, that both axes must be equal in this respect.
The horizontal axis presents the period of time presented in the report, and the
vertical axis presents earlier planned milestone deadlines.
Dates of assessment
1.06 1.08 1.10

1.10
1.08
Legend
The achievement of a milestone is moved

further and further, which indicates lack of
precise deadline planning
1.06
Fig. 5.9 The course of curves in case of lack of precise deadline planning
The newly estimated deadlines of reaching each individual milestone are

assigned each time the assignment is done (progress along horizontal axis),
and then it is connected with a line with the previous deadline estimations.
If the sequence of estimations reaches the diagonal line which binds two ends of
the axes, it means that the milestone has been reached. We must notice, however,
that the vertical time axis must be read from the bottom.
The curves in the above graph shall be interpreted as follows:
The ascending curves mean failure to keep the deadline,
Horizontal lines mean that given milestones progress as planned,
Descending lines mean that given milestone will be achieved earlier than
planned,
If milestone curve reaches the diagonal it means that is has been terminated.
Examples of four typical cases of the milestone deadlines development are
illustrated in the following Figs. 5.9, 5.10, 5.11, and 5.12:
Case 1 (Fig. 5.9)
The planned deadline to reach the milestone is moved forward each time, the
verification takes place. The course allows to draw a conclusion that deadline
planning was not done with a necessary accuracy and poses a serious risk to the
whole project planning.
Case 2 (Fig. 5.10)

The planned deadline of reaching the milestone ( ) remains unchanged, while
the deadline of reaching the milestone planned to be reached before moves
Dates of assessment
1.06 1.08 1.10
1.10
1.08
Legend
Milestones has not been achieved. Planning of

reliable indirect result is not adjusted to the
situation. Conclusion : possible relationships
1.06
between both have not been taken into account.
Fig. 5.10 The course of curves in case of failing to take relationships into account
Dates of assessment
1.06 1.08 1.10

1.10
1.08
Legend
All milestones have not been achieved in spite
of the initially apparently correct development.
It indicates lack of active and reliable project
1.06 course management.
Fig. 5.11 The course of curves in case of lack of active management of the further course of
project
Dates of assessment
1.06 1.08 1.10

1.10
1.08
Legend
Reaction on the difficulties at the beginning has a
positive influence on the course of the project. The
relationship between milestones in the initial stage
1.06 is also well visible.
Fig. 5.12 The course of curves in case of positive reaction on the difficulties at the beginning of
the project
continuously forward, i.e. the deadline is subsequently delayed ( ).In most

cases reaching of a milestone is conditioned by reaching of the deadlines one
after another; however, in this case, the effects of moving the milestone 1 ( )
have not been taken into account. The situation is not very trustworthy and shall
draw an attention of the project manager to clarify the issue and eventually to re-
plan the deadlines of both milestones.
Case 3 (Fig. 5.11)
All milestone deadlines are verified several times and confirmed as realistic.
Shortly before the first milestone is reached, new delayed deadline is set and
again moved ahead when also this date is passed. The situation is similar with
other two deadlines. The situation is clearly out of control and poses a risk to
the whole project.
Case 4 (Fig. 5.12)

Milestone Trend Analysis shows clearly the negative impact of failure to keep
the deadline of milestone 1 ( ) on the following deadlines. The steps taken to
counteract further negative development are reflected in positive influence on
the development of deadlines.
Table 5.2 summarizes shortly advantages and disadvantages of Milestone Trend
Analysis.
Table 5.2 Positive and negative sides of the analysis of the MTA
Positive sides Negetaive sides
Simple, understandable, easy to use Subjective assessment
Can be done in a short time The curve of trend cannot be the only indicator
of progress
Transparent and explicit Explanation is necessary
Differences in deadlines are clearly visible
Perfect means of communication in the project
and out of it
Allows to verify the interdependencies
Enforces awarness in deadline keeping
Stimulates the general team awareness
10:35 Cost Driven Management
Budget Planning and Control

The project scope can be fully reached only if targeted results are reached within the
deadlines and within the planned financial budget. It is thus necessary to regularly
keep the record of arising costs in relation to the budget set at the initial stage of the
project.
Cost driven management sets the financial limits as the regulatory vehicle
demanding adjustments in time or in project scope features to match these limits.
Prerequisite to effective cost control is possibly detailed allocation of financial
means to individual tasks and deadlines associated with these tasks. (compare 10:31
Workbench).
Project Relevant Financial Accounts

Reasonable is further split of the costs into cost groups, related to the company or
purchasing organization accounting scheme. From the project point of view rele-
vant are the following categories of expenditures:
Own costs of staff on a pay-roll
Costs of staff on loan and external services
Project investment costs
The first (own staff) and last (investment) are medium to long term
commitments. As such they can be only conditionally modified and in general are
unsuitable instruments of cost driven management.
Effective on short notice management is feasible with staff on loan and external
services. A project manager has a high flexibility to decrease or increase the
expenditures depending on the current situation within one or two financial revenue
periods.
Obviously, the company standards may lead to further spilt of these classes due
to the further internal rules of e.g. investment write-offs or assets management.
Now
past May June July Aug Sept Oct
Nr Phase Total Total Total Total Total Total Total
A F A F A F A F A F A F
1 Inception 240 850 850 - - - - - - - - - -
2 Planning 5720 - 100 400 600 600 600 940
3 Implementation 1200 - - - - - -
4 Closing & Eval. 0 - - - - - -
Fig. 5.13 Exemplary project double cost tracing scheme
Project Double Cost Tracing Scheme

Due to the asynchronous and delayed company accounting data and possible
accounting errors, mentioned earlier in this chapter, a project-manger is encouraged
to proceed with shadow, project internal, accounting tracking. Figure 5.13
summarizes the exemplary project cost double tracing scheme in alignment to the
proposed workbench (A account, F forecast, see section 10:31 Workbench).
The Analysis of Cost-Consumption Ratio

The Analysis of Cost-Consumption Ratio helps to achieve the estimated values
concerning the sum of costs of a given project in relation to the targeted final
deadline. Simultaneously, the above analysis may serve, just as the Milestone Trend
Analysis, as the indicator of early warning about possible deviations in the project.
Earned Value Analysis is a prerequisite to the correct Analysis of the Cost-
Consumption Ratio. Setting the estimated value of global costs is conducted in six
steps:
The starting point are the planned total costs PTC of the project resulting from the
planning of projects costs (see Chap. 2, 07:00 Planning & Scheduling P & S).
Actual up-to-date project costs, meaning cumulated costs ACC, are determined
cyclically (e.g. once a week).
The actual earned value (EV) is determined periodically, while the value of the
finished tasks and packages of tasks strictly relates to the planned costs. In case
of task packages, which have not been completed, the earned value is determined
on the basis of the actual earned value in the project (see section 10:32 General
Assessment Procedures, Earned Value Analysis, step 2 hereafter)
The estimated value of total costs ETC is calculated according to the formula
presented below, on the basis to the planned total costs, the actual cumulated
costs and the actual earned value:
Table 5.3 Example of the cost trend in a project

Control Actual Earned Cost impact
period Planned total cummulated value factor (ACC/ Estimated value of
(week) costs (PTC) costs (ACC) (EV) EV) total costs (ETC)
1 200 25 20 1.25 250
2 200 50 40 1.25 250
3 200 80 60 1.33 267
4 200 100 80 1.25 250
5 200 140 100 1.40 280
6 200 170 120 1.42 283
7 200 180 140 1.29 257
8 200 200 160 1.25 250
9 200 215 180 1.19 239
10 200 230 200 1.15 230
ACC
ETC PTC
EV
where:
ETC: estimated total costs
PTC: planned total costs
ACC: actual cumulated costs
EV: earned value
Cost Impact Factor

The ratio of ACC to EV is determined as the cost impact factor. The value higher
than 1 indicates the increase of costs, the value lower than 1 indicates the decrease
of costs as compared with the original planning. Table 5.3 illustrates the exemplary
estimations.
Figure 5.14 illustrates graphically the above example. Diagram allows to detect
any deviations from the cost plan in the early stage and to counteract on time.
Comparison of cost impact factor of two consecutive estimations illustrates the
following rule of cost trend evaluation:
If current cost impact factor is higher than the most recent one, we have an
increase of total costs beyond the currently anticipated level (compare period
2 and 3 in the above example).
If current cost impact factor has lower value when compared to the previous one,
the tendency to increased cost efficiency shall be expected (see e.g. periods
610).
If there is no change in the cost impact factor value, we have stable situation,
irrespectively of the actual estimated total cost ETC relation to the planned total
costs PTC.
[1000$]
300 280 283
267 257
250 250 250 250
239 230
250
PTC=200 200
150
100
50
ETC 0
1 2 3 4 5 6 7 8 9 10
control periods (week)
Fig. 5.14 The example of the project cost trend
The Example of the Analysis of the Cost Trend as the Indicator of Early Warning
About the Deviations in the Planned Costs.
If the total costs amounted to $22,220,- with the progress index equal to 0.9,
we must take into account the increase of total financial expenditures at a
level of about 10 %. This value holds true as long as the cost impact factor
remains stable constant, i.e. other unitary costs remain unchanged and there
are no other effects on the course of project realization.
Advantages and disadvantages of the cost trend analysis are given in Table 5.4.
10:36 Simulation Tools
Simulation Tools
Complex project, judged by size (over $500,00.-), complexity (over 100,000
function points) or project staff number (over 10) make manual elaboration of the
interdepencies and mutual impact a Sisyphus work.
Cost Impact Factor

Available tools like TopSim, Simultrain or ProModel (TopSim 2013; Simultrain
2013; ProModel 2013) allow the multidimensional optimization along selected
criterion of the shortest time or the lowest cost. Progress index may be modeled
directly through the adopted in the simulation earned values or as a quality
parameter. The last has a linear impact on the realization time und thus cost.
Table 5.4 Positive and negative sides of the analysis of cost trend
Positive sides Negative sides
Simple, undersstandable The method can cause problems with calculating the
earned value
Easy to use The curve of the trend cannot be the decisive factor only
Transparent, explicit Explanation is necessary
Easily noticeable proved differences It does not include the anticipated decrease of costs in
Clear form of early warning about the future
deviations
Increases the awareness of cost
rationalization
Stimulates the team awareness
The simulation tools allow to enter the real project data of each individual task
and to summarize the total time and costs along different realization paths. Several
strategies of prospective project developments may by exercised.
Convenient are tools which hook on the widely used project planning tools like
MS Project, e.g. Project Simulator (Schnitz 2009). By entering the additional
information like chosen index criteria or strategy various options of cost/deadlines
development may be evaluated (Fig. 5.15).
However, the predictability of the expected results is limited to the correctness
of the implemented algorithms (Lent 2009). This indeterminacy may be used to
reflect an impact of the human factor (e.g. staff motivation level) but it puts the final
simulation results in question. In conclusion, this technique shall not be used solely
to support the EVM process, but may be adopted as a validation tool for otherwise
elaborated results.
10:37 Decision-Making Process
Once the results of the level of project goal realization, mile-stone and cost analysis
(remember the magic triangle?) are available, we can proceed to the decision
process about the necessary corrective actions in the project (the author in his
vast praxis never met project where it was not necessary!).
The decision process would be an easy go if all the data, used in the analyses
were 100 % error-free. In this case, a straight forward follow-up of the obvious
conclusions form the performed analyses would be the way to proceed.
However, most data and estimations, like earned value, are approximate with
limited degree of reliability.
Among different techniques of decision making, few, like e.g. Bernoulli Rule,
provide complicated mathematical apparatus to include the evaluation of risk
associated with the used limited reliability figures (Schildbach 1993).
Some useful practices are described below.
Fig. 5.15 Project simulator screenshot deadlines trend (Simultrain 2013)
Minimum Loss-Maximum Profit, or Maximum Profit Minimum Loss Rule

Minimum Loss Maximum Profit Rule (or opposite) refers to the case of worst case
anticipation. The rule is, to choose the option, which causes the lowest losses. Thus,
the person taking decision must choose the alternative of the smallest maximum
losses in case of unfavorable course of developments in the project.
Optimization Rule
The Rule of Optimization is applied in case of completely opposite attitude. The
priority is given to the profit and not the loss maximization. Thus, the person taking
decision chooses the option to minimize the losses in the possibly most favorable
course of developments in the project.
Pessimism Optimism Rule

The pessimism optimism rule entails both of the above procedures. When
assessing the alternative options the best and the worst partial result for each option
is summed up, while the two partial results are balanced before summing up in the
following way:
Possibly highest value of each alternative option is multiplied by subjective value ,
Possibly lowest value of each alternative option is multiplied by (1 ).
Following remarks shall be considered while choosing :
The value of reflects the personal assessment of situation by the person taking
decision,
The value of can only be within the range between 0 and 1, including both
0 and 1 values,
Table 5.5 Progress control meetings minutes

Minutes of . . .. Project . . .
Date of the meeting/consultancy. . ... Subject. . ..
Participants Distribution list
Reports on management processes
P&S, OM, PRM, EVM, QM, PBM, RM, CM, IM, KM, DM, BSC
HRM, TM, CFM, COM, SM, L
In a given case:
1. Evaluation of the project progress (since the last report)
2. Justification of differences
3. Improvement potential
4. Other planned activities
5. Decision concerning the differences and precautionary measures
If the decision maker sets the value of lambda equal 1, he is very optimistic and
applies the Rule of Optimization.
The value of lambda equal 0, indicates the fullest pessimism of the decision
maker and thus deployment of Minimum Loss Maximum Profit Rule.
The assessment of all the alternative options is performed with the same lambda
factor,
The alternative with the highest final result value is to be chosen.
Expected Value Rule
In case of the Rule of Expected Values each partial result of one of the alternatives
is multiplied by a weighting factor, before the balanced partial results are
summarized. This way, we achieve the final value of the alternative with subjective
estimation of individual elements.
The following points must be taken into consideration:
The assessed partial results which corresponds each to other in different
alternatives are multiplied by the same factor,
Factors are taken regardless of each other (except that, there are relationships
between particular partial results),
The value of factor can only be within the range between 0 and 1, including 1 and
never 0 values,
Unlike in the rule of pessimism optimism, where in the assessment of the alternative
only the best and the worst values are taken into consideration, the rule of expected
value compares all values. A balance factor should be taken for each category,
The alternative with the highest final score is to be chosen.
10:40 Templates
The indispensable elements of earned value management process and progress

control are meetings and consultancies, which should be recorded in the minutes.
The minutes should include the items given in Table 5.5:
10:50 Activities and Deliverables of EVM 137
Table 5.6 Test report Report on the test (HERMES 2003)

example
0 General information
1 Aim of the document
2 Scope of the test
2.1 Performed activities
2.2 Test goals and focus
3 Test results
3.1 Applied methods and procedures
3.2 Assessment of test results
3.3 Anticipated risk
4 Enclosures
Tests results/ test minutes
Test specification
Tests procedures
Tool applied in assessment of the progress in the project scope realization are
tests. The type, form and procedures applied concern the process of earned value
management (Table 5.6):
10:42 Documents of the Projects Results
Earned Value Management Process shall produce the results, which may be
presented in one of the following forms including earned value (Fig. 5.6) and a
critical factor (Fig. 5.7) not depicted there (Table 5.7):
10:50 Activities and Deliverables of EVM
Process development and the results of the EVM can vary in different sub-processes
of production, validation, and business process reengineering (Fig. 5.7), Therefore,
the activities and the deliverables are presented separately for each of the above
sub-processes:
Sub-process Production
Tasks. None
Results. None
Table 5.7 Project progress report example

Project progress report (HERMES 2003 (2003), p. 185 ff)
2 Project status
2.1 General situation
2.2 Results reached in the reported period
2.3 Discrepancies in the results as compared to the plan
2.4 Discrepancies in the deadlines as compared to the plan
3 Project costs
3.1 Discrepancies in the costs as compared to the plan
3.2 Justification of the actual costs
3.3 Countermeasures against cost increase if applicable
4 Encountered problems and applied solutions
4.1 Encountered problems, unexpected events, appearing risk
4.2 Applied and suggested solutions, countermeasures against risks and cost/deadlines de
viations
5 Forecast of further project development
Milestone Trend Analysis
Sub-process Validation
Tasks. None
Results. None
10:50 Activities and Deliverables of EVM 139
Sub-process Business Process Reengineering
Tasks. None
Results. None
Tasks
Choice and elaboration of suitable Earned Value Management tools and
techniques
Preparation of the assessment of progress control in accordance with the reali-
zation plan
Conducting the assessment of the progress control and EVM reports of the stage
of planning
Results
Chosen and agreed methods and techniques of EVM
Plan of progress control and EVM reports
Assessment of the progress control and EVM reports of the planning phase
Tasks
Same as in the Sub-process Production for validation efforts
Results
Same as in the Sub-process Production, focus customer acceptance
Tasks
Conducting the assessment of the progress control and EVM reports of the
realization phase
Results
Assessment of the progress control and EVM reports of the realization phase
Tasks
Evaluation of the validation test reports and validation of the results reached in
the reported period
realization phase
Results
Test rapports with assessment of the validated results
Assessment of the progress control and EVM rapports of realization phase
Tasks
Assessment of the viability of business process reengineering
realization phase
Obtaining customer acceptance of EFM reports
Results
Business process reengineering assessment -
Customer reviewed assessment of the progress control and EVM reports of
realization phase
Tasks
Conducting the assessment of the corrective efforts and failure improvements
progress and EVM reports of the implementation phase
Preparing the final project EVM reports, production part
Results
Assessment of the corrective efforts and failure improvements progress control
and EVM reports of the implementation phase
Final project EVM report, production part
Tasks
Conducting the assessment of the test and validation efforts progress and EVM
reports of the implementation phase
Preparing the final project EVM report, validation part
Bibliography 141
Results
Assessment of the test and validation efforts progress control and EVM reports
of the implementation phase
Final validation report of project results
Final project EVM report, validation part
Tasks
Conducting the assessment of the migration progress and EVM reports of the
implementation phase
Preparing the final project EVM report, Business Process Reengineering part
Agreeing with customer on Final evaluation results
Results
Assessment of the migration progress control and EVM reports of the imple-
mentation phase
Final project EVM report, Business Process Reengineering part
Assessment of the progress control of implementation phase
Bibliography
Felske P (2003) Integrierte Projektsteuerung. In: Rationalisierungskuratorium der Deutschen
Wirtschaft e.V. (Hrsg) Projektmanagement Fachmann, Band 2, 7. Auflage. Eschborn
Hansen HR, Neumann G (2001) Wirtschaftsinformatik I, 8. Auflage. Stuttgart
HERMES 2003 (2003) Fuhren und Abwickeln von Projekten in der Informations- und
Kommunikationstechnik; Informatikstrategieorgan Bund ISB. Bern
Kahlbrandt B (2001) Software-Engineering Mit Der unified Processing Language. Springer Berlin
Heidelberg
Lent B (2003) Projekthandbuch der Firma Lent.ch (internes Dokument), zu beziehen unter http://
www.lpmu.ch
Lent B (2009) Analiza wybranych strategii komputerowej symulacji wielowymiarowej
optymalizacji prowadzenia projektow (An analysis of selected strategies in the multidimen-
sional optimisation of project management processes in computer based simulation.), Lent, B.,
Studia i Materiay Polskiego Stowarzyszenia Zarzadzania Wiedza, Systemy i Technologie
Informatyczne SiTI2009, Bydgoszcz
Lewis JP (2011) Project planning, scheduling & control; a hands-on guide to bringing projects in
time and on budget, 5th edn. MacGraw-Hill, New York
Mag W (1993) Planung. In: Bitz M u.a. (Hrsg) Vahlens Kompendium der Betriebs-
wirtschaftslehre, Band 2, 3. Auflage. Munchen
Motzel E (2003) Leistungsbewertung und Projektfortschritt. In: Rationalisierungskuratorium der
Deutschen Wirtschaft e.V. (Hrsg.) Projektmanagement Fachmann, Band 2, 7. Auflage.
Eschborn
Ottmann R (2003) Qualitatsmanagement. In: Rationalisier-ungskuratorium der Deutschen
Wirtschaft e.V. (Hrsg) Pro-jektmanagement Fachmann, Band 2, 7. Auflage. Eschborn
Phillips J (2010) IT project management: on track from start to finish, 3rd edn. McGraw-Hill,
New York
ProModel (2013) Decision making tools. ProModel Corporation, Orem. www.promodel.com.
Accessed 10 Feb 2013
Schildbach Th (1993) Entscheidung. In: Bitz M u.a. (Hrsg) Vahlens Kompendium der Betriebs-
wirtschaftslehre, Band 2, 3. Auflage. Munchen
Schnitz K (2009) Projekt-simulation white paper. Schnitz GmbH, Munchen
Simultrain (2013) The training simulator. STS Sauter Training & Simulation SA, Lausanne. http://
www.sts.ch/index.php?option=com_content&task=view&id=18&Itemid=43&lang=en. Accessed
10 Feb 2013
Szyjewski Zdzisaw (2001) Zarzadzanie Projektami Informatycznymi. Placet, Warszawa
TopSim (2013) TopSim Planspiele. Tata Interactive Systems, Tubingen. http://www.topsim.com/
de/standard-planspiele/planspieluebersicht.html. Accessed 10 Feb 2013
11:00 Quality Management: QM
6
Quick Look
What Is It?
Quality Management ensures that project results meet exactly project scope: the
deliverables, goods or services are not better and not worse, but precisely along the
specifications, which in turn shall fully reflect all expectations of the ordering party.
Who Does It?
It is advisable to assign the responsibility for the quality management to a different
person, not a project manager, within the project and contract an external quality
control as well.
Thanks to Quality Management all expectations are transformed into
specifications, we can plan and manage because we know the details, delivery
matches the expectations, and all impact factors are treated comprehensively and
efficiently.
What Are the Steps?
Quality Management starts with setting the rules of own acting: mostly aligned with
projects hosting company standards. As soon the project team starts, a comprehen-
sive tracing of any deviation within the agreed path is performed: product, process,
team. The discovered discrepancies are reported and traced. And last but not least,
question posses itself: are there any possibilities of improvements?
What Is the Work?
QM delivers: exact picture of any deviation in the project scope realization, code of
quality management system and improvements suggestions.
How Do I Ensure That I Have Done it Right?
As a project manager choose your quality manager as soon as possible best in the
initialization phase. Follow consciously his advices. As a Quality Manager agree
with everyone in team and all stakeholders about your handling rules (- system),
trace carefully the agreed relevant features, be creative in improvements
suggestions, keep going strong, when your good advices are not been taken into
account.

144 6 11:00 Quality Management: QM
OM
11:00
Adjust Int. and Ext.

Responsibility No
& QM System QM-Responsibilities
chages? & QM System
Yes
External Internal
Quality Quality
Product Quality
Review Evaluation
Evaluation
Yes Process Quality

Acceptable? Evaluation
No Project
Management
Evaluation
Team Spirit
Evaluation
Yes
Problems? PBM
No
Yes
Changes? CM
No
Lessons Yes
KM
learned?
No
Fig. 6.1 Quality management process
Process
Quality Management process (Fig. 6.1) sets and agrees within project team and
stakeholders own code of practice, which subsequently applies to the evaluation of
the project products and the way, how they are developed. The detected
discrepancies are reported and traced. The gained knowledge shall be processed
to the benefit of own and other processes improvements.
11:20 Methods 145
11:10 The Goal of Quality Management
Quality Management shall ensure compliance of results and projects processes as

well as other type of characteristics with the project scope specifications and its
planned realization. Continuous self-improvement of the Quality Management
Process through Knowledge Management Process contributions and Change Capa-
bility are exemplary issues for the whole project.
11:20 Methods
In Planning and Scheduling the quality requirements are agreed with the project
sponsor and other stakeholders implementing part of the ISO 21500:2012 process:
4.3.32. Plan Quality. The other parts of this process like establishing tools,
determining methodologies, techniques to be used and developing the quality
plan are part of the Quality Management process discussed hereafter. In this process
the following ISO 21500:2012 processes are covered (ISO 21500:2012 2012):
4.3.32. Plan Quality
4.3.33. Perform Quality Assurance
4.3.34. Perform Quality Control
11:21 Quality in a Company
Quality Management System

Quality management consists of all activities related to quality assurance in the
company and in project. This starts with a preparation and conduct of planning,
preparation of the quality management system, integration of this system in the
companys processes and this way into project processes and finally products (see
Fig. 6.2). (Ottmann 2003).
11:22 Projects Quality
Quality degree of requirements accomplishment

(Ottmann 2003)
Quality management consists of periodical or constant check up and assurance that

the set requirements are fulfilled in relation to products quality (results) and the
quality of projects processes.
CMMI
Certain trend towards quantification of the degree of quality may be observed.
CMMI Model (Capability Maturity Model Integration, Fig. 6.3), originally stem-
ming from the automotive industry, distinguishes five levels of maturity with
Total Quality Management
Proper management of
Quality of projects projects quality
results
determines regulates
Quality of process Integration of QM in the

development &
production process
is based
requires
on
Ability to keep System of quality man-

company s quality agement QM in the
whole company
Aims Procedure
Fig. 6.2 Quality management in a company
appropriate measured process and product areas and predetermined evaluation

criteria (SEI 2010). By selecting and applying specific level we do improve our
chances to reach the demanded project quality.
Other standards like e.g. Lean Six Sigma (Stamatis 2004; McManus 2013) or
ITIL (OGC 2011) combine predefined tools with the improvement processes, to
align operations with business strategy.
11:23 Responsibilities for Quality Management in Project
Quality Manager
The task of the person responsible for quality Quality Manager (QM) in the
project is to assure, that the activities planned within the project will be conducted
with the demanded quality and that the results of processes and activities corre-
spond with their documented requirements (ISO 21500:2012 Process 4.3.33 Per-
form Quality Assurance).
Quality Model
Detailed requirements are measured according to criteria of Results Assessment set
in Balanced Score Card (Chap. 13, 18:00 Balanced Scorecard). Quality Manager
acts proactively: he develops the Quality Management System, agrees with the
team on a Quality Model (e.g. CMMI above), quality assurance procedures,
11:20 Methods 147
5 Focus on continuous process Optimi zing

improvement
Process measured Quantitatively

4 and controlled Managed
Process characterized for the Defined
3 organization and is proactive
2 Process characterized for projects Manag ed

and is often reactive
1 Process unpredictable, Initial

poorly controlled,and
Reactive
Fig. 6.3 CMMI model
identifies possible problems and risks a forehead and initiates the necessary actions
before the quality deteriorates below the demanded criteria.
Quality Control
Quite opposite is the suggested external Quality Control (ISO 21500:2012 Process
4.3.34 Perform Quality Control). This is a reactive instrument of posterior determi-
nation of the deficiencies. The team reacts then by introducing counter-measures,
after the deficiency occurred.
Quality Control is an instrument available to Project Manager (see Fig. 6.4), yet,
it is recommendable that the Quality Manager takes the lead to plan, schedule and
initiate the activities of the Quality Control. This secures optimal coordination of
both: internal and external measures and guaranties, that Project Manager does not
become an arbiter be-tween two: an internal and an external party with a conflict
potential.
Internal Quality Management has an advantage of acting as a team member so
there is higher degree of acceptance by team members and he is more likely to act
reasonably as being directly dependent on the project success.
Quite contrary external Quality Control enjoys full independence from project
course and its team. So there is a chance of neutral benchmark, helping the team to
assess their efforts in relation to the industry standards.
Quality Assurance and Validation Process

The quality assurance should not be mistaken with validation process, set in the
Planning and Control Process (see Chap. 2, 7:00 Planning & Scheduling: P & S).
Whereas quality assurance focuses on the evaluation of the degree to which the
requirements have been met, the validation process defines how the individual
deliverables are verified and validated against the specifications. Validation Process
Project Manager
Responsible for Quality Control (QC)

Quality (QM)
Team Member Team Member

Periodical
Constant supervision
supervision inside from outside the
the project project
Fig. 6.4 Person responsible for quality and control of the projects quality
focuses exclusively on the product specifications, their verification, and their

validation, whereas Quality Management concerns also processes and humans
involved in the project.
11:24 Quality and Results Assessment
William Edwards Deming, pioneer of quality management in the USA in 1940s

formulated 14 areas of quality aspects in a company, which are impressively actual
and worthy of pursuing in project management of the 2010th (Deming 2000):
1. Create constancy of purpose for improvement of product and service.
2. Adopt the new philosophy.
3. Cease dependence on mass inspection.
4. End the practice of awarding business on the basis of price tag alone.
5. Improve constantly and forever the system of production and service.
6. Institute Training.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between departments. People should work as a team.
10. Eliminate slogans, exhortations as contra productive.
11. Eliminate quotas and objectives. Substitute leadership.
12. Remove barriers that rob people of their right to pride of workmanship.
13. Institute a vigorous programme of education and self-improvement.
14. Put everybody in the company (project) to work to accomplish the
transformation.
The todays Total Quality Management TQM, emerged from the Demings
premises. It is a philosophy resulting in a management style in delivering quality
11:20 Methods 149
- motivation
- style of management
Human factor in a
- atmosphere in a company
project - communication
Results (all products and services)
Customer oriented TQ Making the organization

products
M flexible
- regulation of the scope

- internal and external relationship of competence
between clients and suppliers
- all processes in a company (production, Constant methods
logistics, administration etc.) optimalization
- cost reduction
Fig. 6.5 Total quality management (Ottmann 2003)
to the customer by viewing each task in the organization as a process that is in a

customer/supplier relationship with the next process (Naidu and Rajendra 2006;
Hummel and Malorny 2010). TQM groups the Demings premises into four
perspectives (see Fig. 6.5).
Perspective of Providing Services to a Client

Consistent orientation on the provision of services to a client in quality manage-
ment (presale sale after sale) requires the following elements to be taken into
account:
Explicit requirements between clients and supplier,
Contract control,
Management of processes in a project,
Management of the process of products (results) planning,
Process of results validation,
Process of after sale support
Periodical assessment of the project by a client.
Perspective of the Process Evaluation

Projects orientation on quality in processes is applied through:
Processes description,
Records of data concerning suppliers,
Regular controls,
Records concerning the quality of a finished process.
Orientation on Team and Organization

Project organization must be oriented towards clients needs, integration of team
members and being able to act according to the set processes.
11:25 Quality Assurance Plan
With various targets, complex project scope, multiple active contributors and
several models to choose, well organized systematic approach to quality assurance
seems to be the only way to reach reasonable solutions at reasonable cost. The
magic keyword is: Quality Assurance Plan.
Quality Assurance Plan (QA-Plan) regulates the scope and approach to secure
the quality in the project. It is neither resource nor time planning tool. These are
handled in the planning and scheduling and organization management processes
(see Chap. 2, 07:00 Planning & Scheduling: P & S and Chap. 3, 08:00 Organization
Management: OM).
In QA-Plan firstly, a selection of a quality model determines further identifica-
tion of specific quality relevant project scope features.
Identification of all quality features may be done with the help of techniques
introduced in Chap. 2, 07:00 Planning & Scheduling: P & S: brainstorming,
morphological matrix, etc.
Subsequent structuring allows for quality goals identification and finally criteria
of their accomplishment forming a sound basis for further activities listed below.
11:26 Method of Quality Control
Quality control may be performed in a similar manner as results assessment in

Earned Value Management:
Compare planned and actually reached results,
Run analysis and trends research (statistical methods),
Control the present level of quality,
Control and elaborate improvements proposals,
Periodically control the projects progress with regard to quality.
The main support means of quality control in a project are the following:
Quality management and quality control plans, which de-fine means of quality
assurance for a given project (de-termination of the projects results, which are
subject to control, selection and provision of adequate control methods etc.),
Schedule of control, which includes the dates of planning particular controls
with important details concerning their running and criteria,
Controls minutes, which are used as a form of documentation of the carried out
control and its results.
11:27 Accepted Norms/Standards and Their Directives
In most companies quality standards are aligned with internationally recognized,

already quoted above (see Chap. 2, 07:00 Planning & Scheduling: P & S), quality
management standards such as:
ISO 09001 (quality norms),
ISO 15504 (programming),
DIN 69901 (project management)
CMMI (process quality)

ITIL (service support)
Lean Six Sigma (service delivery)
TQM (quality management)
The techniques and tools presented below used in quality management have been
divided into two groups:
Quality of the Project Management System
1. Techniques and tools which serve the provision and development of quality
of project management itself. In the centre of attention there are the project
management processes as listed in this book. Motions for improvement and
implementation of changes, achieved with the use of techniques and tools of
the group, refer to the processes of projects execution. The rules and the system
are comprised in a project management handbook.
Quality Management in a Project
2. Techniques and tools of quality management in a project help to achieve the

projects goal. They refer to all operational tasks of the project, and in
particular to the planned goals. Current situation in a project is compared with
the target goals specifications. The comparisons provide conclusions about the
improvements and changes, which aim at the correction of any deficiency in a
project. However, unlike in case of Earned Value Management, here the com-
parison is carried out irregularly in alignment with major decision points
(milestones, problem solving, changes etc.).
11:31 Quality of Project Management System
Certification
Certification is carried out by independent units. They prove the compliance of the
system of project management with legal regulations or independently set standards,
exemplary named in section 11:27 Accepted Norms/Standards and Their Directives.
Most companies and projects honestly admit that main motivation of certificate
acquisition is first of all, a marketing aim. The improvement of the quality of
product and process, and the increase of clients satisfaction diverge unfortunately
to a secondary goal. Nevertheless, the final result is a contribution to project quality
and that is what really counts.
Since besides the processes first of all team and the project manager have
significant influence on the projects success, also the team members and their
qualifications can become the subject of certification. Certification of team
members along the same standard leads to a common understanding and eventually
the standard of theoretical and practical knowledge, which is particularly useful in
comprehensive and multicultural projects. There are different standards and differ-
ent requirements; most valuable for quality contribution are those, where qualifica-
tion and practical experience are necessary to acquire a certificate (see also
Chap. 14, 20:00 Human Resource Management: HRM, Section 20:33 Candidates
Evaluation Techniques).
Audit
During audit independent auditors (i.e. people, who are not directly responsible for
the execution of the audited activities) conduct systematic review, if the way how
processes are executed and results are consistent with the planned course of process
realisation and its assumptions and if the planned stages of the project lead to
the achievement of goal. The main points covered by the audit are as follows
(Ottmann 2003):
Purposefulness, adequacy and sufficient effectiveness of the project manage-
ment system
Sufficient documentation of the taken measures in order to carry out the project,
Fulfilment of requirements of the adopted project management handbook
Organization of the process of reaction on deviations in the project management
system.
The aim of audit is to formulate conclusions leading to improvements in the
project management system. Therefore, a systematic, comprehensive and repeat-
able audit proved to be most effective.
The auditor is responsible for the following activities (the list reflects the
sequence of audit activities):
Selection and build-up of auditors team,
Preparation of audit plan and schedule,
Conducting preliminary talk with the project manager and the project team. Its
aim is to explain the goal and way, how the audit will be done;
Audit performance in cooperation with the audited project team (comparison
of project documentation with the contents of a project management hand-
book, direct questioning of team members, practical control, short time surveil-
lance, etc.),
Taking minutes of the findings, (the results must remain confidential at that stage
of audit)
Presentation of preliminary conclusions to the project manager and team
members agreed with him. The presentation must contain the summary of
audit findings as well as recommendations of precautionary measures.
Verification of the conclusions and elaboration of final audit results, comprised
of audit findings and improvement recommendations
Control report to the interested parties and bodies supervising the project. The
report must include the following data:
Confidentiality clause,
Scope and aims of the performed project audit
Names and references of the auditors,
Name and affiliation of the audited project,
Time and place of audit,
Data concerning the reviewed documents,
Statement about the differences and flaws (if there are differences in opinion
between the auditors and the project manager, the statement must include
both opinions properly marked),
Steps taken by the project manager and team members in order to exert
positive effect on the project management system prior to audit, including
the responsibilities and deadlines,
Assessment of the actual state of projects management issued by auditors,
Name of place, date and signature of auditors,
Distribution list,
Enclosures.
Project Management Handbook

Mandatory tool in effective project management is project management handbook.
It comprises all the rules, along which project is to be conducted, best case building
up a project management system, i.e. rules integrated in some comprehensive,
integrated, logically constructed structure (see Chap. 11, 16:00 Knowledge Man-
agement: KM, section 16:36 Project Management Handbook).
11:32 Quality Management in Project
Periodical Control of Project Realization

Periodical control of project realization is carried out regularly, however, first of all,
after certain events, as for example when a milestone has been achieved or there
have been a change of the project manager. Except establishing the present (actual)
situation in comparison to the planned results, the periodical control of the project
realization supports also earned value evaluation in the area of progress estimation
(see also Chap. 5, 10:00 Earned Value Management: EVM). Periodical control of
the projects state is at the same time a de-tailed, more or less formally planned and
divided into stages analytical and decision process. During the control external or
internal experts evaluate and comment projects results achieved so far. Thus,
periodical, quality management induced control of project, unlike the control of
projects management above, focuses on the quality of the deliverables of the
project. An important trait of the control is that the members of the project team
are included in periodical control and the control directly concerns the manner and
results of their work.
To avoid arbitrary exchange of opinion between the experts and the project team
during a periodical control, we must, possibly early, e.g. during the initialization of
planning of the periodical control, set the expectations concerning projects results
in a written form and agree upon its contents with the project manager and with
team members. Beside that, there must be a plan of control, readiness to implement
modifications in the project based on the control results, as well as the information
that periodical control of the project realization serves the purpose of achieving the
project scope and not divert objectives.
The control of the project realization resembles the project management audit
and is carried out in the following five steps:
1. Planning
Periodical control is planned in cooperation with all the members of the project
team. It also involves control objectives with relation to the goals, time of
control, place of control and the aspects subject to control. In particular, the
time of periodical control, is known to all involved, thus the control is never a
surprise.
2. Preparation
Both the project manager as well as the controlling team gets prepared to the
periodical control of the projects state by collecting the necessary data and
reviewing the control objectives and control criteria.
3. Carrying out the periodical control of the project realization
The basic forms of control are interviews with the project manager and project
team members. The answers are subsequently scrutinized by experts and, if
appropriate, verified by direct inspection by a control team member.
Effective interview demands critical questions well pinpointing the target qual-
ity objectives agreed with the team during the planning phase.
4. The analysis of the present (actual) situation
After the proper control, the findings must be analyzed and the control report
must be prepared.
5. Adjustment of the existing project plan
In order to include or eliminate the detected differences in the further project
realization, the existing project plan shall be adjusted along the results and
suggested precautionary measures formulated during the periodical control of
the project realization. For this purpose a change request is formulated and
Change Management process initiated.
Diagram of Relationship of Network Elements (Project Excellence

Assessment Method )
Diagram of relationship of network elements can be used, on the one hand, to assess
the present (actual) state of a project, and, on the other hand, to assess projects
realization process. The assessment is based on graphical presentation of the
relations between the goals achieved in that period. Starting from the center, each
criterion is placed on the diagram of relationship of network elements as a separate
radius, which terminates according to the relative level of significance (target
objective). We draw concentric circles based on each radius (Fig. 6.6.).
project scope Project

focus management
(P&S, RM)
Project scope management

achievement (RM, BSC, L)
(EVM)
Other stakeholders
interests team
(COM) (TM, SM)
points
Team members
satisfaction resources
(KM, HRM, TM) (OM, PRM)
Project Clients satisfaction processes

results (CM, IM, DM) (QM)
Fig. 6.6 Example of diagram of relationship of network elements
Team Assessment
The assessment of each criterion, depicted in Fig. 6.6, should be, on the one hand,
carried out on the basis of own assessment of the team running the project (e.g.
method of brainstorming (see Chap. 2, 07:00 Planning & Scheduling: P & S)), and,
on the other hand, on the basis of the assessment of experienced experts. In case of
the team assessment, we must assure project scope oriented, objective, open and
honest atmosphere, which allows for a critical attitude to the assessment (otherwise
the results will not be reliable). It is a challenge to the team and in particular to the
project manager.
Benchmarking
Specific technique of assessing quality in a project is benchmarking. Benchmarking
is a reference of project under investigation to another project or universally applied
model. Usually best case results are used for benchmarking. However, consciously
median results or even worse case scenarios may be used as reference, too.
With the use of this comparison assessment, we make an attempt to find out the
reason of other teams success in realization of comparable project. Due to that, it is
necessary to take two steps: firstly, we must point to the differences in realization to
other projects and project teams; secondly, we must examine the reasons of the
differences. On the base of this analysis the improvement potential is identified and
if feasible a suitable change request initiated. In case of reference to best case
model optimization of project management processes is feasible, leading to the
efficiency increase in team.
On the one hand, benchmarking should be referred to another model project as

close to our project as possible, on the other hand, a positive cross-boundary
benchmarking may bring substantial improvements, stimulated by adverse
procedures or product criteria, which are applied in different disciplines.
Benchmarking Risks
Benchmarking shall be carried out by a team of experts who deal with each other on
equal terms. This is particularly critical in case of benchmarking between two
projects by two different teams within the same organization or market. Honest
and thus only valuable benchmarking demands an exchange of sometimes confi-
dential information between both the referenced and benchmarked project. Rivalry,
competitiveness, personal attitudes are decisive to success in this otherwise excel-
lent technique.
The following procedure is recommended for successful benchmarking:
1. Examination of own project with the focus on weak points and improvement
potential.
2. Organization of the team caring out the benchmarking (35 members).
3. Analysis and elaboration of indicators of discovered weak points and improve-
ment potential.
4. Choice of the model of reference and team representing this model, to be treated
openly and on equal terms in further benchmarking steps.
5. Initiation of contact with a chosen team representing benchmarking model and
establishment of common goals and benefits.
6. Joint comparison of indicators and analysis of differences, weak points and
improvement potentials by both teams together.
7. Documentation of results and if needed, further analysis by our project
benchmarking team.
8. Choice of improvement measures, scope of responsibility, deadlines and partic-
ipation in the realization.
Models of comparison which are used in benchmarking can be divided into two
groups (Schelle 2003):
Models independent from the branch
Are usually based on indexes,
Are usually oriented both on the processes and results,
Serve the comparison, less an improvement identification
Example models: methods of project assessment Project Excellence (see
Chap. 13, 18:00 Balanced Scorecard: BSC, section 18:22 BSC Evaluation),
PM Delta.
Models specific for a particular business activity field:
Are mainly oriented on a process,
Define exact terms of reference
Provide good source of improvements potential
Example models: CMMI, BOOTSTRAP, SPICE for ICT, Minergy for Con-
struction, Vehicle Certification for traffic allowance etc.
11:50 Activities and Deliverables of QM 157
Models which focus on processes tend to provide human independent indicators

and terms of reference, misleading the benchmarking team to a final project
evaluation, which apparently does not rely on human momentary attitude.
In reality, performance and quality of work of each individual may vary up to
tenfold depending on e.g. motivation that is not considered in such a benchmarking.
Therefore, a reasonable dose of criticism is recommended while applying this
technique.
11:40 Templates
Quality Assurance is an integral part of any projects realization. Thus, it is

important to elaborate a plan of quality assurance, which entails the items listed
in Table 6.1 below:
11:42 Documentation of Projects Results
In parallel to the Quality Assurance Plan, it is also vital to describe a model of

quality management, which reflects the quality goals with reference to products. A
possible model of quality management is given in Table 6.2 below:
11:50 Activities and Deliverables of QM
Tasks
Draft with the team possible rough quality goals or project scope features
Results
Rough quality goals agreed with project team
Tasks
Develop the system of quality management taking into account possessed
relevant certificates
Define quality goals on the basis of projects goal and the existing standard of
quality (goal of the company, branch standards, directives, standards). Quality
goal must be oriented both on the clients service as well as processes, and team
members
Table 6.1 Quality assurance plan example

Quality assurance plan (QA-plan) (HERMES 2003 2003)
2 Goals
General, specific for a project quality assurance goals
3 QA organization
QA in the project structure, tasks, scope of responsibility as well as interfaces to other teams
outside the project
3.1 Organization structure
Quality Management Organisation and Quality Control units; both responsible for quality; their
mutual relation. The level of independence of people or units playing their role in QA process must
be unambiguous
3.2 Tasks and scope of responsibilities
Responsibilities within the Quality management. First of all, we take account of the differences in
relation to the model of roles assignment established by a standard
3.3 Cooperation outside the project
It is important to decide which institutions, organization units or people are responsible for giving
information and contacts both inside and outside of the organization. The enclosure to the projects
plan must also regulate matters connected with reporting on quality management
4 Strategy
It includes the main terms concerning quality applied in the project. The strategy defines the course
of projects quality assurance, and in particular quality planning, quality management and quality
control
5 Qualification
It lists directives and standards of a project, which are the basis of system and its function units
qualification; they are set depending on certain level of precautionary measures taken by the
person responsible for quality QA
5.1 Applied directives and standards
Here is the enumeration of all important for the project directives and standards, which refer to
hazard and safety, necessary to qualify the system. We must assume general definitions of the
system security. As a rule, they refer to a catalogue of criteria, what is more, the included
regulation rules are applied in accordance with the project specificity
5.2 Security induced requirements
Here is the enumeration of QA precautionary measures based on the level of required data security,
and demanded precaution measures
6 Quality assurance accompanying the development
Activities and list of projects results, which are subject to quality control, must be clearly defined.
Moreover, there is a list of necessary decisions concerning their realization
Results subject to control
It is important to create a list of all results, which are to be controlled
6.2 Activities subject to control
It is important to create a list of activities, which compliance with the set rules (standards,
directives, and methods) must be controlled in the project
6.3 Tests
Here is a rough list of all anticipated tests. The details are presented in the concept of tests and their
specification
(continued)
11:50 Activities and Deliverables of QM 159
Table 6.1 (continued)

Quality assurance plan (QA-plan) (HERMES 2003 2003)
6.4 Decisions concerning realization
It is important to decide about the organization of the process of decision taking which concerns
the realization (decision points, objects of control, participants, invitation, course, taking minutes,
and so on)
6.5 Baselines and results assigned to them
Results, which are defined as starting points for further steps in the project development, are
gathered together to form a baseline. We must decide here, which baselines are required and which
values should be assigned to the baselines
7 Specific means of control
Here we enumerate and describe specific means of the control of quality assurance with reference
to ready products, dispatch, but also problem presentation, management activities as well as
controls referring to Knowledge Management Process
7.1 Initial controls of ready products
There must be identification of the producer and product
We must check if there is a documentation compliant with the project scope specifications
We must explain if proper steps of the quality assurance have been taken or in which cases the
control must be enhanced
7.2 Contractors controls
It is important to establish which directives concerning realization are relevant for the contractor.
With the use of such directives concerning realization we must set:
Scope of documentation and
Standards of contract fulfilment (e.g. programming), etc
Next, we must establish means of control for the contractor:
Control accompanying the development
Acceptance controls of the made products
Assumptions of internal controls at the contractors
7.3 Initial control of the components of the system
Different types of products and services require detailed information about documents, control and
acceptance testing (as a supplement of works accompanying the project)
7.4 Encountered problems and activities taken to solve the problems
Here is a description of methods to be applied in case of reporting, tracing and solving the
problems
7.5 Control of modifications and changes
Here is the list of requirements concerning the quality assurance QA with reference to procedures
applied to change management and induced changes from the view of QA
7.6 Regulation of supervisory competences
Here is the description of the manner of QA supervision. It especially refers to the access to the
documentation of the QA-results
7.7 Control of configuration management, data security and archives
Here is the description of the procedures in case of control of the configuration management, data
security and archiving
Table 6.2 Quality model example

Q-model (HERMES 2003 2003)
2 Basis of quality model
Presents briefly the basics of the quality model (e.g. SPARDAT or ISO9126).
3 Specification (distinguishing features) of a product
Describes the specific character of a product/application/of the system, which is to be created.
4 Structure of significant quality features
Here is the enumeration of specific features alongside with the description of their significance,
taken from the basic model of quality management
5 Quality goals
Here is the enumeration of the most important parameters of quality and the description of their
influence on the goal of the project and product
6 Quality indicators and criteria of their accomplishment
Here is the description of quality indicators together with characteristics, criteria of their
accomplishment and their measurement, taking into consideration the assessment and method of
their performance
The particular quality features and criteria of their accomplishment can be enumerated with
reference to particular stages
Start the search of a benchmark partner

Prepare plans for Quality Assurance, Quality Management and Quality Control
taking into account the quality goals
Develop the quality indicators and quality criteria
Evaluate the initial status of all quality indicators
Results
Model of quality management
Quality Management System
Preliminary Assessment of Project Results in Planning Phase
Quality Assurance Plan
Quality Management Plan
Quality Control Plan
Certifications
Tasks
Control the product realization
Conduct periodical control of the project
Carry out benchmarks
Carry out a quality control
Carry out a control of project realisation
Actualise QA-, QM- and QC-Plans
Bibliography 161
Results
Control minutes
Periodical control report of project status
Benchmarks evaluation report
Report on the control of the present (actual) state of the project
Diagram of relationship of network elements
Actualised QA-, QM- and QC-Plans
Tasks
Manage the process of quality assurance of the project realization and results
Perform and document final quality acceptance tests
Collect the acquired knowledge and enter data to knowledge management
Results
Collected knowledge regarding quality management
Documentation of final acceptance tests
Bibliography
Deming WE (2000) Out of the crisis. The MIT Press, Boston. ISBN 0262541157
Kommunikationstechnik; Informatik-strategieorgan Bund ISB, Bern
Hummel T, Malorny C (2010) Total quality management tipps fur die Einfuhrung. Hanser
Fachbuchverlag, Munchen/Wien. ISBN 978-3-446-41609-3
McManus K (2013) Are your Six Sigma Leaders Really Trained to Lead? http://www.processex
cellencenetwork.com/people-performance-and-change-in-process-improveme/articles/are-your-
six-sigma-leaders-really-trained-to-lead/. Accessed 10 Feb 2013
Naidu N, Rajendra G (2006) Total quality management. New Age International, New Delhi
OGC (2011) ITIL V3 complete suite Lifecycle Publication Suite, TSO London. ISBN:
9780113310500, Update 2011
Ottmann R (2003) Qualitatsmanagement. In: Rationalisierungskuratorium der Deutschen
Wirtschaft e.V. (Hrsg) Projektmanagement Fachmann, Band 2, 7. Auflage. Eschborn
Schelle H (2003) Nutzen und Erfolgsfaktoren von Projektma-nagement, Berichtswesen und
Projektsteuerung, Benchmarking, Lehrveranstaltung Projektmanagement, Universitat der
Bundeswehr Munchen
SEI (2010) CMMI for services, version 1.3, CMU/SEI-2010-TR-034, ESC-TR-2010-034, SEI
USA
Stamatis DH (2004) Six sigma fundamentals: a complete guide to the system, methods, and tools.
Productivity Press, New York, p 1. ISBN 9781563272929
12:00 Problem Management: PBM
7
Quick Look
What Is It?
Sooner or later each project faces a serious technical or organizational problem:
something that exceeds the possibilities of daily routine decision making and the
frames of scheduled budget. Problem management helps to bring the project back
on track in a systematic, professional way.
Who Does It?
Problem solving is a chiefs matter. However, there may be someone in a team or an
available external expert who can efficiently lead the team towards problem
solution and save some time of the chief. In any case it is advisable to involve the
team members, who are closest to the source of the problem or subject to its
effects.
Problems draw project out of its scopes, let budgets explode or introduce unac-
ceptable delays. This may have a negative impact on project team members, lead to
the project stop or even have serious legal or financial consequences for all the
involved. All reasons to counter it.
What Are the Steps?
Good identification of the problem and its reasons is a starting point; knowledge
about the desired situation the other end. Systematic evaluation of the possible
solutions and associated risks leads to the selection of the right countermeasures.
The implementation of the selected solution closes this process.
What Is the Work?
Critical is the profound evaluation of the reasons, why problem occurred and the
identification of the main causes. An exact recall of the project scopes and formu-
lation of the desired situation at this very stage in the project help to assess the gap.
There are always more than one way to close the gap be conscious of the risks and
choose carefully the most efficient solution.

164 7 12:00 Problem Management: PBM

Problems mostly do not disappear they rather amplify with time. So tangle them
as soon as you detect first symptoms. Use experts, any knowledge available to
identify the right sources and best sustainable solutions. Make them truly work
half hearty steps will hit back with double impact.
Process
Problem Management process (Fig. 7.1) tackle the unplanned major issues in the
project and counter them consciously. The gained knowledge shall prevent problem
recurrence.
12:10 The Goal of Problem Management
The goal of Problem Management PBM is to solve in sustainable way technical and
organizational problems which emerged in the project within the planned projects
costs and planned time schedule. The process takes place during the whole project
duration. PBM comprises both problems detection as well as supervision of the
selected solutions realization.
12:20 Methods
12:21 Problem Management Focus
In the process of projects realization, we encounter different unexpected

challenges. Their common denominator is the project time and budget, which
enforce the search of a solution within that frame.
To deal with them effectively, we shall select the way best suited with their
nature.
Problem Management process, and subsequently this chapter, focuses on the
technical or organizational issues.
The interpersonal occurrences demand a different approach. Depending on their
nature, they are deliberately treated in different human factor dedicated processes
(see Chapters beginning Chap. 14, 20:00 Human Resource Management: HRM and
the following).
Problems usually have vast impact on project and project team members.
Solutions demand creative and often unorthodox approach. It is purposeful to
involve a wider group of team members: all those, who might have something in
common with the reasons, why problem emerged as well as all those, who can
contribute to fast choice of the best sustainable solution. External experts may boost
the right diagnosis and right solution significantly.
12:20 Methods 165
P&S, OM, PRM,

EVM, QM, KM,
CM, RM, IM
12:00
No Any
Problem ?
Yes
Description
Goal definition
Reasons &
See 12:21
Solution
No
Acceptable ?
Yes
COM
Yes
Changes ? CM
No
Yes
New risks ? RM
No
Lessons Yes
KM
learned ?
No
Fig. 7.1 Problem management process PBM
12:22 Problem Solving Procedure
Problem solving procedure is a substantial part of Problem Management. It begins

with the proper description of the problem and ends with the implementation of the
selected solution (Pannenbacker 2003). (see Fig. 7.2).
Identification of a problem
Analysis of the actual situation
Target situation
Description of differences and

results
Identification of potential causes
Identification of main reasons
Working out goals concerning

solutions
Combination of different
partial solutions
Drawing up solutions
Assessment of final solutions
Choice of the optimum solution
Realization of the solution
Fig. 7.2 Problem solving (Pannenbacker 2003)
1. Identification of a problem
Good identification of a problem is already half-a-way towards the right solu-
tion. Problem shall be unambiguously distinguished and described in such a way
that the description indicates the starting point of counteraction.
2. Description of actual and target situation
The description of actual situation places the problem in a context: it appears
together with all observations and information, which are or seem to be
connected with the problem. Best way is when the project team together
12:20 Methods 167
describes the actual situation and proceeds to describe target state with the most
important aspects the same way. Team work is essential: any additional question
and description of the tar-get situation as viewed by different persons may
deliver relevant hints on problem causes and potential solutions.
3. Description of differences and results
By exposing significant discrepancies between the actual situation and the
expected one, we accentuate possible directions of problem solving. We observe
here mainly the con-sequences of the arising problem which exerts influence on
the project and/or surroundings.
4. Identification of potential causes of the differences
An effective problem solution can be achieved only through the removal of its
causes. To identify the right one, all possible causes are gathered here. Problems
may be induced by:
Man,
Organization,
Deadline,
Budget, costs,
Surroundings,
Methods
Technology.
5. Identification of the main cause
Right solution begins with the identification of the main cause. Several
techniques may be deployed in this step. It can be done for example through
the ABC analysis.
1. Drawing up solutions and their assessment

First, the goals of potential solutions are carefully and thoroughly formulated.
Then, all possible steps in order to achieve the goal are drawn up. Different
partial solutions can make a complete solution. The elaborated solutions can be
later improved and supplemented.
The optimum solution may be drawn up on the basis of different assessment
methods (ABC analysis, analysis of functional value etc.).
The stage of problem solving is finished when the involved persons who defined
the problem are convinced that the worked out solution is a target one and it really
eliminates the problem and/or its results on the way to projects scope achievement.
1. Solutions realization
In order to secure the realization of the selected solution it is purposeful to define
an action plan:
What should be done?
Who should do it?
Which auxiliary measures should be taken?
When the action can be considered as finished?
Who controls the results?
What will happen, if the taken steps do not bring the expected success?
Example
During the project management it is impossible to keep an important deadline.
1. Identification of a problem
It is impossible to avoid the delay in spite of the taken precautionary
measures. The goal of the solution is re-synchronization of the magic triangle:
cost, deadline and result with the planned values/amounts of cost-deadline-
result triangle.
2. Description of the actual and target situation
The gap between the actual and target situation increases (extrapolation of the
currently achieved results).
3. Description of differences and results
It is impossible to keep the deadline, because of insufficient production
capability. In case when the situation remains as currently unchanged for a
longer period of time, the costs of the project are going to get doubled.
4. Identification of potential cause
Incorrect appraisal of costs in the process of project planning
Holiday leaves have not been worked into the schedule while planning
No planning of regulations concerning replacement
Wrong priorities during the project planning
Sudden absence of projects team members
Insufficient abilities of the projects participants
5. Identification of main reasons
The main factor with most negative impact on goal achievement is the
planned absence of two engineers (holiday leave)
6. Drawing up solutions and their assessment
(a) Getting additional team members impossible for financial reasons
(b) Suspension of the holiday leave for both engineers at cost of their
cancelled holiday travel commitments.
In this case, the second (b) solution is chosen and realized.
7. Realization of chosen solution
What should be done? Cancel all Travel Arrangements, refurbish the costs
Who will do it? Cancellation: Projects assistant Ms X
When? Refurbishing the costs: Accountant Mr Y 10.05.10
Figure 7.3 illustrates the recommended techniques in the process of problem solving.
Problems by nature appear unexpectedly and as such call for the fastest possible
solution. Therefore, for the sake of time, in most cases only selected crucial
elements of methodical approach are performed. The particular, most frequently
used techniques are presented below.
Acquisition of
Finding solutions Assessment
information
Interview Brainstorming Risk analysis
Analysis of
Questionnaire Workshops
functional value
Consultations with
Checklists ABC analysis
experts
Analysis of
Data bases, reports Relationship matrix
profitability
Fig. 7.3 Techniques and tools in PBM
12:31 Techniques of Information Acquisition
Interview
Interviews, as well as coincidental chats in the hall, in a canteen etc., are one of
the most appreciated and efficient means of acquisition of information while tracing
possible problems. They provide the project manager and the project team with a
unique possibility of getting information concerning both the issue and the sphere
of impressions, directly from the involved person.
Crucial for proper problem analysis is best possible gathering of all information
concerning possible causes of the problem. The interviews and chats offer good
possibility to question our counterpart, attentively perceive the answers and what
is even more valuable in case of problem identification read the body language
during the answers. The last may be the main source of real information in case
sensible performance issues are involved.
Interview is a formal way of information exchange, planned in advance and
agreed between the participants with regard to time, place and agenda. Both parties
have a chance to prepare and even elaborate the questionnaire. This results usually
in smoothed version of answers and, in fact, consciously or unconsciously falsified
description of the reality.
Not surprisingly the apparently spontaneous and coincidental chats are in some
cases not so coincidental as they seem to be to the interviewed person. In search of
real information the whole set-up of such a chat is well prepared in advance, the
seemingly irrelevant remarks are well placed questions, and the whole even shortest
encounter is meticulously masterminded.
Time Allocated for an Interview or Chat

Special attention shall be given to the time allocated to the interview or chat. In the
later case it might be more challenging as we can only anticipate our counterpart
schedule and cannot predict his engagement in the chat, nor his willingness to spend
the time with us.
In most cases we are confronted with a fix time allocated to an interview or
uncontrollable duration of a chat. The subject and purpose of the interview or chat
are crabbed as the time elapses. Significant details might get by unnoticed.
Yet, we should strive to adjust the time planned for an inter-view or chat to the
complexity of an issue. In most cases after 12 h, the attention of participants falls
down and either a consecutive follow-up meeting or a brake is necessary.
Documentation
The result of an interview, the interview or a chat itself should be documented.
Useful are meeting minutes made after the interview, notes during and after each
answer, filling in of the prepared survey, as well as recording the whole interview.
The last three can not be done visibly to our counterpart while chatting.
(Pannenbacker 2003).
Questionnaire in a Written Form

Unlike an interview, during which both parties have the possibility to comment or
precise the statement upon additional question, questionnaires in a written form are
mostly carried out in an asynchronous way between the questions and given
answers. This allows the interviewed per-son to reconsider the answers, take any
time intended for this task and, in case of anonymous questionnaires, to provide
openly honest reply, otherwise unobtainable.
Preparation of a useful questionnaire is a comprehensive and complex task. All
questions have to be perfectly unambiguous and leave practically no room for any
interpretation other than intention of the author (Kuhn and Fankhauser 1996, p. 173
and further). In practice, the technique is often viewed as too demanding and
requiring too much time. In case of problems, which demand a thoughtful analysis
and concern many persons, in spite of all the above, it can be still the only and
proper technique.
The following issues are to be considered in case of questionnaires
(Pannenbacker 2003):
The asked questions can be consciously or unconsciously understood in a wrong
way. That is why it is suggested to ask the so called control questions.
Respondent can also be given only a limited possibility of various statements (so
called closed questions)
If a questionnaire is filled out in the presence of a pollster, it may have an
influence on the given answers.
Form, way of conducting and the analysis of questions asked in a written form,
as well as the danger of reluctant conduct of questioned person, can require even
bigger effort than anticipated.
Survey
Survey is a more comprehensive form of asking questions useful in case of asking
unprepared and, to only limited degree, involved persons. It may be conducted in a
written printed out form distributed over conventional distribution channels or
electronically in an interactive manner. The survey thus must enclose:
Preliminary Letter
In a preliminary letter we include the goal, relation between the respondent and the
subject of the survey (why exactly this person is asked questions), deadline to
respond, contact persons in case of further questions as well as advanced expression
of gratitude to the respondent for taking care and time for providing the answers. If
an analysis of anonymous answers is sufficient for problem identification, then we
should also assure the respondent about the anonymity here.
Title Page
The title page identifies the initiator of the survey and way how he can be contacted.
The goal of a survey has to be stated and an average time for answers, (in any case
not longer than 30 min!) shall be given. Deadline to return the survey and exact
address are mandatory.
Initial Set of Questions

The first set of questions of the survey is used as the Ice breaker. It is achieved
through simple questions, which can be easily answered and which at the same time
present the respondent with the topic.
Main Set of Questions

Main set of questions of a survey includes questions for which the pollster seeks
answers. This is the core of a survey and should be properly prepared.
Additional Remarks
In the part additional remarks a respondent is given a possibility of providing
further information, additional questions or comments. It is usually realized through
open questions.
Demo-Graphical Data and Thanks

If it is necessary, we also ask questions concerning demo-graphical data concerning
the respondent or his/her position. They can be useful in the answers analysis. At
the end, we should thank the respondent and place again the address, where the
survey should be returned.
The analysis may start with the first received replies. It is important that all
results are documented and stored together with other completed surveys.
Checklists
Checklist is built up of questions, which aim is to identify and describe the problem
together with its reasons. Checklist for the purpose of Problem Management shall
include:
What exactly is wrong, and how should it be?
When exactly did the problem arise?
What was the reason of the problems escalation?
Is it a problem in the area of technology or organization or a problem connected
with a human factor?
Is it possible that the technology or organization problem stems from personal
reasons?
When does the problem may be registered and when does not?
Where was the problem observed?
What do we know about the problem?
What should we know about the problem?
Is it certain that the problem is not a symptom of a different problem?
What is the starting point for the problems solution?
Data Bases and Reports

Another source of information can be the existing data bases or reports. They must
be searched purposefully in order to find useful information. However the data
recourses in the present companies have too big volume for a comprehensive
research without a set goal. Due to that, a project manager must know exactly
what to examine or search. The process of searching can be systematical or with the
use of free questions. The goal is to compare and find relationship between the
information from the data bases and the data gathered otherwise.
12:32 Techniques of Searching Solutions
Brain-Storming
Solution of a problem often requires a new or unconventional type of idea.
Brainstorming described in Chap. 2, 07:00 Planning & Scheduling: P & S, serves
well for identification of such ideas.
Workshops
If a choice between several good ideas concerning solution has to be made,
workshop is a good and efficient way to go. The discussion which takes place
during the workshop may lead to new ideas extending the number of available alter-
natives.
Two solutions are practicable: either all participants of work-shops work on the
same alternatives, or different subgroups are created, each working on their own
alternative of solution. As next, all elaborated ideas are presented on a forum and
discussed again.
At the end of a workshop or a cycle of them, the number of alternatives must be

reduced to a possibly small number of well founded working solutions. All notes
taken on flipcharts, wall boards, transparency etc. must be kept for the purpose of
documentation.
Delphi Procedure
Ideas and alternatives of solutions can be found with the support of experts along
the Delphi procedure ( see also Chap. 2, 07:00 Planning & Scheduling: P & S, Chap. 5
10:00 Earned Value Management: EVM).
Mind-Mapping
Mind Mapping is a cognitive technique stimulating the associations with similar or
related entities. (Buzan et al. 1996) The interrelationship between the components
is depicted in a form of a graphical presentation. Alternative solutions are divided
into the components (entities) which are linked and hierarchically structured. The
entity which describes a problem or seeks a solution is placed in the middle of the
page. The individual solutions are drafted starting from that central entity building a
tree of identified components (Bergfeld 2003) Visualization helps to identify
contradictions, interdependencies and assess the complexity of each solution.
12:33 Solution Assessment and Selection Techniques
Functional Value Analysis

While the analysis of risk level makes an attempt to quantify the potential damage
in a project, the Functional Value Analysis (FVA) concentrates on the benefits
which are provided by the alternative. In fact, certain benefits are difficult to express
in numbers, e.g. delivery deadlines, products quality, working conditions or
motivation of partners (Garcia and Hirakata 2008). In order to achieve a basis for
the overall assessment of a solution, Functional Value Analysis balances all impor-
tant aspects of alternatives and assesses them with the use of points allocated to a
specific functional value. The metrics is well suited for evaluation of the initial
project scope definition and earned value analysis. (Pannenbacker 2003).
The Functional Value Analysis consist of the following steps:
FVA Criteria Definition

Firstly, project team involved in elaboration of the FVA has to formulate the FVA
criteria, along which the analyzed problem solution will be evaluated.
Balance of FVA Criteria

In this step criteria are mutually balanced through the evaluation of their relevance
to the sought problem solution.
Table 7.1 Exemplary FVA metrics

The level of the fulfillment of the criterion 100 98 95 90 <90
Points of functional value 10 8 6 4 0
Table 7.2 Exemplary FVA evaluation

Maximum amount
Criterion of points Solution a Solution b Solution c
Level of the fulfillment of goals 20 20 18 12
significant for the user
Fulfillment of the producer 10 7 10 0
requirements
Operational results 10 10 9 10
Associated risk evaluation 10 9 5 10
Probability of keeping the deadlines 20 18 12 18
Costs 30 24 26 28
Total (the best option is the one 100 88 80 78
with a maximum number of points)
FVA Metrics
In parallel to the balance of all criteria, metrics for each single criterion is to be
defined. The metrics can be functional or in form of a matrix as presented below in
Table 7.1.
Assessment of the Alternatives

Once the criteria are mutually balanced and metrics being developed, the fulfill-
ment of each criterion of all alternatives can be assessed by a project team.
Calculation of the Functional Values

For each assessment the functional value is assigned along the agreed metrics. The
final assessment of each alternative is achieved by summarizing the assigned point
values for each alternative. In practice, a simplified example could look in the
following way (see Table 7.2)
In the above example the highest score of the acquired FVA values is the
winning option. It is also possible to reverse the evaluation and to follow the
minimal values. However, the reader is discouraged to mix the individual criteria
to be either best minimum or best maximum, as this usually leads to some errors and
miscalculation in the final evaluation.
Sensibility Analysis
If we are not certain about the correctness and precision of the results or when the
assessments of alternatives are very similar to each other, it is purposeful to adjust
the metrics for better differentiation or check their stability with the calculation of a
deviation of component values.
12:40 Templates 175
Results
The results including minutes of meetings and consecutive iterations shall be
properly documented.
ABC Analysis
ABC analysis (Pannenbacker 2003) is often used as a heuristic procedure based on
the otherwise proven rule, that in the whole set of possible reasons of problems
there is a small subgroup (the so called A reasons and solutions), which has a
decisive influence (rule 80:20) on the final solution. Examples: the single occur-
rence which determines the fate of the project, like e.g. wrong composite or change
to a completely new technology which solves once and forever the critical compos-
ite risk. Thus, it is purposeful to focus ones attention and to concentrate the efforts
on this subgroup (class). In the second B class there may be up to 50 % of all
possible solutions, but they contribute only 20 % to the total solution. The
remaining third group sometimes as large as B class contributes only 10 % to the
total success. The following ABC analysis procedure is suggested:
Determine the assessment criteria to qualify the alternatives into the classes A, B
or C (e.g. risk potential and/or probability of its occurrence),
Assess the outcome of the alternatives,
Put the alternatives into a sequence as they contribute to the total solution,
Add and verify the result of the assessment of all alternatives (100 %),
Compare the assessment results of each alternative in relation to the total of
100 % (data in percentage),
Display the evaluation results graphically in a system of coordinates (the axes
present cumulated values)
Delimt and choose the class A, B and C solutions.
Profitability Analysis
The elaborated alternatives must be checked also for their profitability. The same
ratio criteria of various mechanisms as presented in Chap. 2, 07:00 Planning &
Scheduling: P & S and in Chap. 5, 10:00 Earned Value Management: EVM may be
applied (Berman et al. 2005).
12:40 Templates
The document identification of exceptional situation is used to describe problems

taking place during project realization (Table 7.3). The document helps later to
compare the reasons of the problems and their solutions.
Exceptional situations must also be monitored in order to ensure the realization
of accepted problems solutions and possible avoidance of reappearance of the same
problems in the future.
Table 7.3 Problem evaluation form

Identification of exceptional situations (HERMES 2005)
0. General information
1. Identification
Number of exceptional situation
Short description
Date
Author
2. Priority
Level of urgency
Where and how does the exceptional situation exert influence (system, available measures,
resources, achievement of decisive points)
Category (error, problem, sickness, accident, etc.)
3. Impact of exceptional situation and precautionary measures
Estimation of the impact of exceptional situation
Definition of conduct in order to take control over the exceptional situation
List of exceptional situations/problems (HERMES 2005)

1. Identification
Project identification
Date
2. For each problem/exceptional situation:
Identification of a given problem
Progress in the process of problem solution (identifies in a text critical state, solution)
Person responsible for solution
Deadline, up to when the solution should be realized
12:42 Documents of the Project Results
The documentation of the process of problems solving make the solutions manage-
ment easier and increases the effectiveness of the process (Table 7.4).
12:50 Activities and Deliverables of Problem Management
Tasks
Draft with the team possible rough problem solving approach
Results
Rough problem solving approach agreed with project team
12:50 Activities and Deliverables of Problem Management 177
Table 7.4 Solution documentation

Solution to a problem x
1. Problem
General description of a problem, also in connection with its context
2. Traits characterizing a problem
Detailed description of a problem with its properties. We must take account of all the aspects of a
problem (technical, organizational, professional and personal dimension)
3. Procedure applied to solve a problem
It includes a description of the ways how the problem solution have been sought. Each alternative
comprises their utterances concerning the usefulness of a given conduct in relation to a specific
problem, possibility of adjustment to the conduct, as well as possible alternatives of execution
4. Results of problem solving
The results of problem solution are described in detail. They also include the most important
elements of the analysis of the process of problems solution
5. Results verification
The functionality of problem solution must be checked after a given period of time. At this point
we must present results of the control; it is possible that it may lead to further correction, which
analogically to problem solution in PBM, are formulated and treated as a motion for changes
implementation
6. Change Request
On the one hand, we must formulate all change requests necessary to find a solution, as well as
describe these change requests. This way it is possible to trace again the route leading to the
solution as well as partial results of the process. On the other hand, we must also enumerate all
changes currently in the implementation, including their present state, which can appear during
further verification of problem solution (see point 5 of the document)
Tasks
Define the exact problem solving procedure
Establish the problem management team
Define and put through the team acceptance the problem description documents
Make the problem management operational
Upon Problem Appearance:
Conduct the acceptance of problem description
Evaluate the actual and target situation
Describe the differences and their results
Identify possible causes
Identify the main cause
Prepare solutions and their assessment
Supervise the realization of solution
Secure the documentation of the process
Initiate appropriate processes COM, RM, CM, KM
Results
Problem Management procedures and templates
Problem Management organization
Documentation of the results of problem solutions
Tasks
Analogically to Planning Phase
Results
12:54 Closing & Evaluation Phase
Tasks
Results
Bibliography
Bergfeld H (2003) Kreativitatstechniken. In: Rationalisierungskuratorium der Deutschen
Wirtschaft e.V. (Hrsg) Projektmanagement Fachmann, Band 2, 7. Auflage, Eschborn
Berman K, Knight JV, Case J (2005) Financial intelligence: a managers guide to knowing what
the numbers really mean. Harvard Business, Boston
Buzan T, Buzan B (1996) The mind map book: how to use radiant thinking to maximize your
brains untapped potential. Plume, New York
Garcia CAL, Hirakata CM (2008) Integrating functional metrics, COCOMO II and earned value
analysis for software projects using PMBoK. In: Symposium on applied computing
proceedings of the 2008 ACM symposium on applied computting. ACM, Fortaleza
tionstechnik (IKT), Systemadaptation, Informatikstrategieorgan Bund ISB, Bern
Kuhn R, Fankhauser K (1996) Marktforschung: Ein Arbeitsbuch fur das Marketing-Management;
Bern/Stuttgart/Wien
Pannenbacker O (2003) Methoden zur Problemlosung. In: Rationalisierungskuratorium der
Deutschen Wirtschaft e.V. (Hrsg) Projektmanagement Fachmann, Band 2, 7. Auflage,
Eschborn
13:00 Risk Management: RM
8
Quick Look
What Is It?
In each project unexpected occurrences demand handling. By preparing possible
reaction to those occurrences and later acting correspondingly in systematic way we
can significantly reduce negative impact on our project. We call it risk management.
Who Does It?
Each team member shall be made sensitive to possible risks. Someone in team shall
take charge to lead the preparation and during the project course handling of the
potential and already occurred risks.
Risks have always negative impact on project. Their unpredictable occurrence can
magnify this negative influence. By analyzing potential risks and preparing the
suitable measures we can reduce this impact to the level acceptable to the project
customer/sponsor.
What Are the Steps?
At the very first planning, initial risk assessment and detection system shall be done.
An evaluation shall lead to the preparation of countermeasures. Upon risk occur-
rence the prepared action shall be initiated and lessons learned shall be forwarded to
Knowledge Management.
What Is the Work?
First the analysis of possible occurrences with negative impact on the project shall
be done. Probability of occurrence and impact level shall lead to some classifica-
tion. Measures shall be elaborated with regards to the risk as well as its impact and
procedures of their application shall be defined. Upon occurrence proper handling is
to be adopted, including unforeseen events.
It is advisable to entrust creative analyst in a team with the responsibility for this
process. Whole team and, wherever applicable, external persons with suitable exper-
tise shall be involved in risk analysis and evaluation. Elaborated measures shall have

180 8 13:00 Risk Management: RM
sound economical justification. Make sure that customer/sponsor of the project fully
support your risk assessment and expenditures for mitigating measures.
Process
Risk Management process (Fig. 8.1) prepares possible measures to mitigate poten-
tial risk or reduce impact upon their occurrence by systematic risk analysis and
assessment of the prepared measures. Upon risk occurrence suitable actions are
undertaken. The gained knowledge shall prevent problem recurrence.
13:10 The Goal of Risk Management
The goal of risk management is an economical minimization of negative impact of

unexpected occurrences in project through constant identification and analysis of
potential hazardous situations, elaboration and conscious implementation of the
chosen precautionary countermeasures.
ISO 21500:2012, in the description of the process 4.3.28 Identify risks, includes
also the events with positive impact into the risks under consideration (ISO
21500:2012 2012). However, in the view of the author, positively impacting events
are mandatory in planning of the project and upon occurrence in any case to be
implemented. As such there are different methods of dealing with both types of
events. Therefore in the considerations of this Chapter only events with negative
impact are further considered here.
13:20 Methods
ISO 21500:2012 distinguishes four risk-treatment related processes (ISO

21500:2012 2012):
4.3.28. Identify Risks
4.3.29. Assess Risks
4.3.30. Treat Risks
4.3.31. Control Risks
The Assessment of the identified risks comes in a sequence after the identifica-
tion and is in praxis a part of risk analysis. The more profound risk assessment
includes the countermeasures elaboration.
The risk treatment is covered by the risk handling procedure hereafter.
Risk control according to ISO initiates changes and corrective actions. Method-
ologically corrective actions have to be treated in a coordinated way with other risk
treatment procedures. Therefore, they are included in the Risk handling Procedure,
too. As the norm does not consider any problem beyond the agreed risk manage-
ment handling or knowledge management contributions, is risk management in this
chapter differently treated. Yet, all the deliverables and actions of the ISO
21500:2012 risk management processes are thoroughly covered here.
13:20 Methods 181
P&S
13:00
Prelimary Risk Analysis,
Plan, and Risk Detection
System Design
Probability & Impact

Risk Evaluation
Countermeasures Countermeasures
Elaboration see 13:24
Yes
Changes? CM
No P&S, OM; PRM, CM, IM,

KM, DM, HRM, TM,
CFM, COM, SM, L
No Any Risk
occured?
Yes
Risk Handling Risk Handling

Procedure see 13:27
Risk Cause
or Impact not Yes PBM
manageable?
No
Yes
Lessons learned? KM
No
Fig. 8.1 Risk management process RM
13:21 Terms
Risks for a project:

Probable events or situations (with a probability of occurrence P) with negative
impact (D-damages) on the deadline, costs and/or results of a project. The multi-
plication of P*D defines project Composite Risk Index CRI (Rohrschneider 2003).
Risk management:
Identification, assessment and priorisation of risks, followed by coordinated and
economical application of resources to minimize, monitor and control the
probability and/or impact of unfortunate events (ISO/DIS 31000 2009).
Countermeasures
Elaboration
Risk Catalogue
with Impact Factor
Definition of Goals and

admitted Strategies
Risk Avoidance Risk Reduction Risk Sharing

Countermeasures Countermeasures Countermeasures
Risk Retention
Evaluation
Final Selection of
Mitigated Risks
Fig. 8.2 Countermeasures elaboration
13:22 Preliminary Risk Analysis, Plan and Risk Detection System

Design
From the very first days of a project we encounter some hazards (risks) for a
planned course. Therefore, simultaneously the analysis of possible risks has to be
conducted, counter-measures have to be elaborated and the risks have to be
accordingly handled. The process must be periodically repeated in order to register
changes both in the hazardous situations as well as in the undertaken precautionary
measures. Frequently we are able to assess the probability of risk even before the
project begins, yet their results and damages appear later (Rohrschneider 2003).
In Planning and Scheduling (see Fig. 8.2) the preliminary risk analysis
accompanies the elaboration of the project structure plan.
Subsequently the planning, goals setting and framework for the risk management
are set. ISO 31000 names this phase establishing the context (ISO/DIS 31000 2009).
Risk Detection System

Crucial to further effectiveness of Risk Management is the detection system
adopted in the project. Basically only symptoms of occurrences which pose a risk
to the project may be identified. The creativity may be supported here by the
selection of the proper reasoning system, like e.g.:
Taxonomy based identification (sources are classified along best cases)
Project goal deduced risk analysis (the occurrences preventing the goals
achievements)
13:20 Methods 183
Project scenario deduced risk analysis (possible threats during project course are
considered)
Company check-list based on best case experience
Suitable indicators with threshold level shall be defined in this stage of Risk
Management.
With preliminary risk assessment and selected detection system reasonable
planning of the next actions may be planned.
13:23 Probability and Impact Risk Evaluation
Priorisation Along CRI

Probability and impact risk evaluation aims at the priorisation of the possible risks.
The priorities are set along the Composite Risk Index CRI (Rohrschneider 2003;
Cadle and Yeates 2008), resulting from the multiplication of:
Probability of risk occurrence
Probability P assessment of the real danger (the risk turns into a fact), which
specific situation poses in a project. It is usually expressed in percentage (see
also section 13:32 Assessment of Risk Rate).
Impact on the project course

Assessment of the potential damages D, caused by risk occurrence, usually
estimated in certain financial values or relative impact scale (e.g. 15).
CRI P * D leads to clear priorisation: the higher the value of CRI, the higher is
the priority of the risk on the list of occurrences, which endanger the project.
Project Scenario Deduced Risk

We encounter two types of risks in projects:
Considerable amount of risks with high CRI originates from project course.
According to CHAOS Group research (Gaulke 2004), the following main risks can
be named:
Insufficiently defined requirements
Lack of contact with a user
Lack of resources/funds
Unrealistic expectations
Lack of support from the board of management
Change of requirements and of specifications
Lack of planning
Project Goal Deduced Risk

The second main group form the project goal related risks, These are technological,
safety, performance, acceptance risks, just to name few.
Risk Identification
Risk analysis shall be performed periodically, triggered if not by tickets from other
processes, than at least by the L-Timer recurrence. In the course of a project risks
are constantly supervised and if proves necessary, a comprehensive analysis shall
be prepared from the scratch. Ideally, risk identification is the result of team work,
or at least it is agreed with the team (Cadle and Yeates 2008). Identified risks and
the evaluation of possible damages form together risk catalogue with impact
factors.
The following examples of risks groups might be taken under considerations:
Human factor:
Have the people who play an important part in a project their replacements?
Who belongs to the group of people playing an important part in a project/
decision taking entities?
Do the project managers possess professional and social competence?
Technique
Have the applied technologies been already checked?
Will the technologies be supported for at least next 10 years?
Where in the course of a project can we identify activities with particularly
high rate of innovations?
Do the technologies and work directions correspond with the strategy?
Budget
Is the budged realistic?
Organization
In what way does the project influence the existing economic processes?
Are there any objectors to the project?
Are there any sponsors for the project?
Goals
Which results and project works are subject to special quality requirements?
Are the requirements concerning the principal and the user detailed enough?
Frame terms/restrictions
Are there any legal restrictions?
Deadlines
Is the planning realistic?
Is there a critical path?
Is there any time interrelation with other projects?
Practical and theoretical knowledge
Where especially is the practical and theoretical knowledge needed?
Do the partners in a project have the necessary professional knowledge?
Is it necessary to involve external advisers?
Project surroundings
The existing surroundings
Influence of line organization
Management
Change of strategy
13:20 Methods 185
13:24 Countermeasures Elaboration
Countermeasures
The goal of countermeasures is the reduction of the Composite Risk Index. In order
to achieve that, it is necessary to identify and assess the costs of countermeasures
implementation (Rohrschneider 2003). Basis is risk catalogue with impact factor,
elaborated in the precedent risk analysis.
Risk Counter-Measures Goals

Countermeasures elaboration may follow various goals and strategies. Goals may
be:
Better description of a risk,
Better identification of the risk source,
Faster identification of risk occurrence,
Suppression of the risk occurrence effects,
Elaboration of countermeasures and their costs estimation.
Risk Priorities
The risk countermeasures shall be weighted against the benefits of their application
and the total costs of the project. Most commonly the costs of countermeasures are
limited and priorities has to be set as which of them shall be applied. In setting the
priorities various aspects can be taken under considerations: Risk assessment, Costs
of Countermeasures vs. benefits, realizability of countermeasures, social impact,
team motivation and so on.
The strategies fall into the following classes:
Avoidance (eliminate, withdraw from or not become involved),
Reduction (optimize mitigate)
Sharing (transfer outsource or insure)
Retention (accept and budget)
These strategies are called sometime ACAT (for Avoid, Control, Accept or
Transfer) in resemblance of similar term describing the US Defense industrial
procurements, where risk assessment plays a considerable role. Figure 8.2
illustrates the countermeasures elaboration, following these strategies.
Risk Avoidance
The risk avoidance countermeasures basically aim in not performing the desired
action, thus not giving a particular risk an opportunity to occur. However, this
means that the originally planned action is not done, too. This may not be an
intention of the project so avoidance may be only selectively applied (e.g.
withdrawing from off-shore activities).
Risk reduction countermeasures aim in:
1. Minimation of the damages or
2. Minimation of the probability of damages.
Good example is the deployment of inflammable materials in fire-prone
environments.
CRI assessment before any countermeasure has been applied
CRI assessment after application of the Risk Avoidance Countermeasures
CRI assessment after application of the Risk Probability

Reduction Countermeasures
CRI assessment after application of the Risk Damage Reduction

Countermeasures
CRI assessment after application of the Risk Sharing

Countermeasures
CRI assessment in remaining risks
Fig. 8.3 Countermeasures efficiency assessment procedur
Risk Sharing
Risk sharing countermeasures actually transfer part of the losses caused by damages
to other party. It may be financial participation of venture capital in project or
agreement with customer to accept lower performance of the project results in case
time of delivery has a priority.
Risk Retention
The retention unfortunately does not foresee countermeasures. These are all risks,
which are consciously left untreated for whatever reason. Design of commercial
aircrafts usually excludes the provision of all passengers with parachutes.
Once the catalog of countermeasures is elaborated, an evaluation along the
goals, priorities and selected criteria can follow. Finally a list of risks, planned to
be mitigated and suitable countermeasures is available for planning and
deployment.
13:25 Countermeasures Efficiency Assessment Procedure
Reasonable deployment of countermeasures calls for certain gradation of their

application and an assessment of the Composite Risk Index CRI at each stage.
This way a selection of suitable measures from the catalogue can be done and
matched with the project course. An evaluation follows the steps depicted in
Figure 8.3.
13:30 Technique and Tools 187
13:26 Risk Detection System
Risk Detection System

The risk analysis produced risk catalogue with risks anticipated and treated with
countermeasures as well as risks, which for whatever reason are not traced further.
Correspondingly the risk detection system shall be conceived.
Firstly, the mitigated risks are to be evaluated upon criterion of their best
detection. Cost/benefit function for possible detection actuators shall be applied.
The actuators shall be distinctive in a sense, that each risk shall be anticipated with
possibly lowest number of cost effective actuators.
Secondly possibly comprehensive detection actuators shall be set for early
detection of all other risks.
The system may be mixed: technical sensor (fire), human rapport (daily), suspect
process evolution.
13:27 Risk Handling Procedure
Risk Handling Upon Occurrence

Risk precaution measures are elaborated on early stage of the project and continu-
ously actualized through all the phases. Shall any anticipated risks occur, handling
shall follow trace the reasons and improve the countermeasures either preventing
the risk reappearance or limiting the damages caused by that type of risk. In case of
completely new situation corresponding exception handling shall be initiated.
Figure 8.4 depicts the procedure.
13:30 Technique and Tools
The techniques and tools presented in Chap. 5, 10:00 Earned Value Management
EVM and Chap. 7, 12:00 Problem Management PBM can be also applied in the
process of RM. The techniques unique for RM are presented below.
13:31 Risk Identification
Besides creativeness techniques, which have already been presented (e.g. Chap. 2,
07:00 Planning & Scheduling: P & S), for risk identification w can successfully
apply own and companys experiences. Few techniques effective in risk manage-
ment are presented hereafter (Gaulke 2004):
Analysis of Project Documents

Regular analysis of the existing documents of a project constitutes a good basis for
the detection of potential risks.
Preliminary
planning Implementation Closing & Evaluation
measures
Preventive Measures
(means preventing losses)
NO
Risk
Appearance
YES
YES NO
Causes
identified?
Repair Measures
Countermeasures (Reducing
Change
against Risk Damages at
Request
Reappearance Reappearance)
Causes Damages
Possible to Possible to
Eliminate? eliminate?
NO NO
YES YES
Eliminated Eliminated
or Reduced or Reduced
Causes? Damages?
NO NO
NO
YES
Exceptional
Situations
YES YES
Handling Scenario
Chang
Request?
Fig. 8.4 Risk handling upon occurrence
Workshops Concerning Risk

The analysis of possible risks is carried out on meetings with internal and external
specialists. With the use of creativeness techniques such as e.g. brainstorming,
Delphi conduct or morphological table (see Chap. 2, 07:00 Planning & Scheduling:
P&S) we attempt to identify, describe, assess (costs calculated on the basis of
earned value) the potential and probability of the earlier de-fined risk occurrence, as
well as to differentiate them. It results in a check list of activities taking account of
the probable risks for a project, their description, probability of occurrence, proba-
ble losses etc. We must take into consideration the fact that the probability
assessment in this case is subjective and thus should be checked by independent
experts (Rohrschneider 2003).
Experience of Partners
The chosen partners of a project from different spheres and levels in a hierarchy are
asked during personal interviews about their assessment of project risks. In excep-
tional situation we can also use surveys.
In practice, however, such clues are very often ignored, since the project
managers are focused too much on the achievement of project goals or have too
optimistic attitude.
Own Experience
Ones own experience but also the existing risk analysis can optionally after being
adopted to a given project contribute to the risk identification. However, in case of
clues gathered this way about the probable risks, it is necessary to evaluate their
relevance to the current project.
Check List of Activities

Check list of activities, often including a list of potential risks is an effective way of
an overall risk evaluation in a project. Since specific risks cannot be identified
through such a check list, it is nevertheless purposeful to carry out the analysis of
risks in a project. The questions already enumerated in section 13:23 Probability
and Impact Risk Evaluation with the purpose of risk identification are a good
example of such check list (Gaulke 2004; Bundschuh 2003).
Systems of Risk Early Detection

Systems of early risk detection enable the analysis of the pre-sent situation in a
project from the point of view of the elaborated risk indicators in a system. This
ostensibly more detailed procedure in comparison to the previous one, is as
effective as accurate are the indicators of risk and their threshold value. For the
preparation of risk early detection system the following can be applied: numerical
indicators (see Chap. 5, 10:00 Earned Value Management: EVM, section 10:31
Workbench), analysis of the milestone trend (same chapter, section 10:34 Time
Control Procedures: Trend Analysis), analysis of costs trend (same chapter,
section 10:35 Cost Driven Management).
13:32 Assessment of Risk Rate
It is helpful in risk assessment to quantify the probability of risk occurrence as well

as the value of possible damages.
Assessment in Non-dimensional Scale

It is known that the approach to express the probability of risk occurrence in exact
percentage values leads to endless discussions. So, instead of that, we create so
called non-dimensional scale with categories of risk probability and damages
assessment, which are not in exact relation to each other: for example low or
minor, or medium, or high. (Rohrschneider 2003) (two-dimensional assess-
ment in non-dimensional scale).
Secondly, we mark alternatives in a proper portfolio (in the example on nine
fields) (see Fig. 8.5) (Cadle and Yeates 2008). Risks with high rate of probability
and with potentially big damages must be treated with high priority. They play a
decisive role in a project. Risks with low rate of probability and with minor
damages can have lower priority.
13:33 Assessment of Precautionary Measures
Cost-benefit Analysis (CBA) follows the concept of classical evaluation of con-

sumer product development (Mishan and Quah 2007). It applies to the
countermeasures in terms of costs and estimation of benefits of their potential
application.
First a general situation is estimated in terms of probability of occurrence P and
possible damages D. The Composite Risk Index CRI describes this situation.
Next, the situations (P and D) are evaluated upon applying countermeasures one
by one. The countermeasure with a higher risk potential than before their imple-
mentation are not further studied. This way all countermeasures are evaluated upon
criterion of CRI improvement (Benefits) (see Example Table 8.1).
Now in the next step the costs of those countermeasures which are taken into
further considerations are evaluated (Costs). The relation of Cost/Benefit indicate
the priority of countermeasures application: the lowest value shall be granted the
highest priority (see Example Table 8.2).
Example
We assess here a loss (L) and the probability of risk occurrence (P).
The risk potential is calculated in the following way:
RP (risk potential) P x L
Situations have been assessed in the following way (see Table 8.1):
As the table shows, the three alternatives are further studied, since all of them
exert a positive impact on risk potential, in comparison to the present situation.
For further assessment, the three precautionary measures are additionally
expressed with the outlay necessary for their realization. Table 8.2, referring
and stemming from Table 8.1, provides the calculated values.
Assessment in the example Table 8.2 showed that the countermeasure number 3
receives the highest priority, although it does not give the greatest reduction of risk
potential. Of course, also special requirements can contribute to the choice of e.g.
Fig. 8.5 Portfolio as the
Damages caused by occurrence

basis of the priority risk 3rd priority 2nd priority 1st priority
high
assessment
medium
4th priority 3rd priority 2nd priority
5th priority 4th priority 3rd priority
low
low medium high
Probability of occurrence
Table 8.1 The example of the assessment of three precautionary measures

Criterion Present situation Measure 1 Measure 2 Measure 3
L 10 9 4 5
P 3 3 1 2
RP 30 27 4 10
CRI improvement 3 26 20
Table 8.2 The example of appointing priorities to precautionary measures

Difference in case of Cost in Thousand Euro for each Priorising the
Measure risk potential thousand Euro point of difference measures
1 3 45 15 3
2 26 120 4,62 2
3 20 75 3,75 1
countermeasure number 2, in spite of the above assessment (e.g. with the set goal,
possibly greatest reduction of risk potential) or a countermeasure number 1 (e.g. in
case of budget restrictions). Needless to say, such type of special requirements or
restrictions must be well documented.
ABC Analysis
ABC analysis (see also Chap. 7, 12:00 Problem Management: PBM section 12:33
Solution Assessment and Selection Techniques) can also be used for the assess-
ment of countermeasures. The subject of analysis, just as in case of the previous
method, is the relation of costs and profits, in order to choose the most effective
measure. The measures are properly prioritized on the basis of the effectiveness of
their impact on risk potential (see Table 8.3). At the next stage, the result is
presented graphically. Graphics is a useful tool in case when the risk is to be
minimalized and our budget is limited. So, e.g. according to Fig. 8.6, with 37 %
of total costs, we can achieve 55 % of benefits, and thus we should apply measures
1, 5 and 3 (Rohrschneider 2003).
Table 8.3 Assessment of countermeasures according to ABC analysis

Risk potential (look above) Outlay/costs
In Thousand PLN
thousand for each point of
Position Measure Difference Cumulated % PLN Cumulated % difference
1 1 65 65 27 39 30 14 1.38
2 5 27 92 38 45 45 21 1.65
3 3 42 134 55 105 80 37 2,.49
4 2 48 182 75 150 130 60 3.15
5 6 15 197 81 51 147 68 3.39
6 7 8 205 85 30 157 72 3.75
7 4 30 235 97 135 202 93 4.50
8 8 7 242 100 45 217 100 6.42
81% 100%
4 8
6 7
2
55%
benefits
37% of total costs

5
(area A) provides 55%
of benefits
1
A B C
0%
0% 37% 68% 100%

costs
Fig. 8.6 Classification of measures with the use of ABC analysis
ABC analysis is effective, when multiple risks and several countermeasures

related even to the same risk, with a minor difference in CRI improvement
(Benefits) are simultaneously traced. In this case the various criteria may be
applied. Maximization of the benefits (CRI improvements) against the
countermeasures costs leads to the classification of most effective set of
countermeasures (Class A), than subsequently B and C.
13:40 Templates
Table 8.4. illustrates the Risk Management Plan.

13:40 Templates 193
Table 8.4 Example risk management plan

RM plan (HERMES 2003 2003)
1. Aim of document
2. Goals
Goal of risk management specific for a project
3. RM organization
Organizational arrangements concerning risk management: organizational structure, tasks,
responsibility, reporting
3.1. Organization structure
People managing risk and their relations
3.2. Structure
Tasks and scope of responsibility is assigned to particular people participating in the process of
risk management. Especially the difference in comparison to a standard model of role distribution
is recorded here
3.3. Reporting
It must be decided which organizational units or people are responsible for giving information and
contact inside and outsider organization. The supplement of a project plan must also regulate
issues concerning the reporting of risk solution management
4. Risk handling procedures
Basic elements of effective risk management
4.1. Sources of information
Sources of information which may indicate the project risks (Risk Detection System)
4.2. Auxiliary measures
In order to assure effective risk identification, we must prepare and designate auxiliary measures.
The possible auxiliary measures may include voluntary and anonymous channels, defined methods
of notification about changes, and interview. It is purposeful to include the description of
cooperation with the process of quality management (QM)
4.3. Instruments and criteria of measurement
Reliability and comparability of measurement is assured through clearly appointed methods,
instruments and criteria of measurement. Moreover, we can assign assumption and framework
terms of measurement
The so called interim indicators (or threshold values) should be made for each important risk, in
order to enable early warning against a loss
Diagram of risks together with interrelations can be used to assess the addend risk influence on the
achievement of Project goals
5. Planning
Planning must be done in great detail (resources, deadlines, outlays, action, auxiliary measures,
instruments and criteria of measurement, results)
Catalogue of project risks is exemplified in Table 8.5. below.

In order to control the applied countermeasures it is advices to record the history of
their analysis and results of their application in a project as exemplified in Table 8.6.
Table 8.5 Example risk catalogue

Risk catalogue (HERMES 2005 2005)
1. Aim of document
2. Risk catalogue
List of project risks with the indicators of risk and their updated assessment
3. Countermeasures
3.1. Application of countermeasures
It includes the applied countermeasures with the following data:
Description of countermeasure
Targeted benefits
Date of application
Present evaluation
Date of risk assessment
3.2. Measures which have not been selected for application
Record of all possible measures excluding the measures listed above under P. 3.1
Table 8.6 Example of risk countermeasures record

History of countermeasures application
1. Aim of document
2. History of countermeasures application
Record and detailed description of all the already used measures, which realization has already
been completed, together with the effects.
13:50 Activities and Deliverables of RM

Tasks
Create a system of risk management taking into account internal and external
standards, guidelines and norms.
Results
RM plan (HERMES 2003, Initial analysis)

Tasks
Identify and assess risks resulting from both the process of project realization as
well as from the characteristics of the planned results
Analyse relationship between risks
Describe, assess countermeasures, grant them proper priority, and implement in
case of need
Bibliography 195
Observe the effectiveness of countermeasures

Optionally, implement further countermeasures
Include the consequence of risk solution management to project planning
Create a risk detection system
Results
Risk catalogue
RM reporting
Verified project plan (plans concerning deadlines, results and costs).
Tasks
Identification and assessment of new risks
Observation and updating known risks
Implementation of countermeasures according to RM decision
Observation of the effectiveness of countermeasures
Results
Implemented countermeasures
Updated risk catalogue
RM report

Tasks
Identification and assessment of new risks
Observation and updating know risks according to RM decision
Implementation of countermeasures
Observation of the effectiveness of countermeasures
Gained knowledge recording in Knowledge Management (KM) System
Continuation in risk management from the users point of view
Results
Updated risk catalogue
RM report
Bibliography
Bundschuh M (2003) Projekterfolgs- und misserfolgskriterien. In: Rationalisierungskuratorium
der Deutschen Wirtschaft e.V. (Hrsg) Projektmanagement Fachmann, Band 1, 7th edn.
Eschborn
Cadle J, Yeates D, edt. (2008) Project Management for Information Systems. 5th Edt. Pearson/
Gaulke M (2004) Risikomanagement in IT-Projekten, Oldenbourg Wissenschaftsverlag, Munchen
Kommunikationstechnik; Informatikstrategieorgan Bund ISB, Bern
tionstechnik (IKT), Systemadaptation, Informatikstrategieorgan Bund ISB, Bern
ISO/DIS 31000 (2009) Risk management- principles and guidelines on implementation, ISO
Geneva
Mishan EJ, Quah E (2007) Cost benefit analysis, 5th edn. Routledge, London/New York
Rohrschneider U (2003) Risikomanagement. In: Rational-isierungskuratorium der Deutschen
14:00 Change Management: CM
9
Quick Look
What Is It?
Changes are sure in each project. By channelling them into predesigned process we
secure their economical and controlled implementation.
Who Does It?
In is advisable to set the Change Management Board consisting of Project Sponsors,
Management and respective field competent persons.
Uncontrolled changes may lead to chaos in project course and in implementation.
They may cause unjustified expenses and make operations in view on invalid
configuration impossible.
What Are the Steps?
Set the organization and the process, how the changes shall be managed in your
project. Than evaluate each change request for its cost/benefit ratio. If justified
verify if there are already similar requests pending - combine them together and
decide about economical realization and controlled release. Adjust the configura-
tion and lessons learned.
What Is the Work?
Organize the change management and change management process. Collect the
change request and let them evaluate if justifiable (cost/benefit). In positive case let
them to be realized and carefully check if grouping of similar cases into problem
management is justifiable. Decide about the time of implementation into operations
and let the configuration to be duly modified. Lessons learned close the process.
Critical is the right selection of the members of the change management board
(CMB) and broad spread of the change request management policy. By securing
that all change requests are handled by your CMB you assure the cost and
operations efficient change implementation. Let the competent processes and
people evaluate the change request and do the job if justifiable. Control the process

198 9 14:00 Change Management: CM
P&S, OM; PRM, EVM,

QM,PBM,RM,IM,KM,HRM,
TM,CFM,COM,SM,L
14:00
Organisation of
Change & Configuration
Management
No
Change
Request (CR)?
Yes
Yes
Similar CR
Pending?
No
Change Request CR Handling

Handling see 14:23
Problem Handling
No OK
fr Release in
Operation?
Yes
Release, Information CR Handling

to CR Handling see 14:23
Yes
Lessons learned? KM
No
Fig. 9.1 Change management process
of further release into operations. Make sure that the appropriate configuration is
correctly updated.
Process
Change Management process (see Fig. 9.1) deals with all sort change requests in a
project. The organization and process set in the preparation phase evaluate each
change request if it is justifiable in terms of cost/benefits. If positive it is
synchronized with other pending requests and controlled release with configuration
update close the process. Lessons learned shall be passed to KM process.
14:20 Methods 199
14:10 The Goal of Change Management
The only constant thing is change, a phrase attributed to Francois de la

Rochefoucauld by Phillips and Gully (Phillips and Gully 2011) drives this chapter.
Change Management Process shall secure the coordinated efficient evaluation and,
if justifiable, the cost efficient implementation of the changes necessary for the final
project results delivery up to order with configuration update which secure the
future correct operations.
14:20 Methods
The ISO 21500:2012 process 4.3.6 Control Changes is fully implemented by the
process presented in this chapter (ISO 21500:2012 2012). Even if the description
Control Changes and the placing of this process in a Control Group processes
suggests reduced to the control handling, the description points rather at manage-
ment, which includes tracing and configuration management, both of the project
and the deliverables. Therefore, this chapter and the process treated here are named
change management.
14:21 Change Management Organisation
In setting the change management organization and change management process

several standards may be helpful. Selectively the configuration is managed by DIN
EN ISO 10007, which handle the responsibilities of management in the areas of the
identification, control, status accounting and verification (ISO 10007:2003 2003).
In the ICT area most comprehensive is the ITIL standard, meanwhile accepted also
by ISO as Standard ISO 20000. (ISO/IEC 20000-1:2011 2011).
14:22 Change Request Handling
Once the change management organization is set and first change requests are
formulated and as new admitted, the change request handling process (see
Fig. 9.2) is initiated (Philips 2010). Change request is evaluated if justified and
whether cost/benefits are favorable. If positive, the change realization by an appro-
priate process is initiated.
In the next step the realized change is prepared for release. This has to be
coordinated to ensure optimal integration with the rest of project and project results.
Released change leads automatically to configuration update. It is indispensable
to adjust the configuration suitably. Here the involved other project management
processes shall take an active part.
Finally, impact control shall secure stable operation.
CR Handling
Change Request
Evaluation
No
Change
Necessary?
Yes
No Cost/Benefit
of Change
favorable?
Yes
Change Realisation and

Info to CM
No OK
for Release in
Operation?
Yes
Configuration Update
Change Impact
Control
Yes
Lessons learned? KM
No
CR Handling
Ende
Fig. 9.2 Course of change process management
14:23 Change Request Handling Phases
The stages of change request handling are analogical to the ones in the process of
project results implementation, presented in Chap. 2, 07:00 Planning & Scheduling:
P & S (Fig. 9.3).
14:40 Templates 201
Initiation Planning Implemen- Closing &

tation Evaluation
Fig. 9.3 Stages of the process of change management
Each change request shall lead to the initiation phase, where the change realiza-
tion is set up. In the following planning phase the change implementation shall be
planned in close interrelation with the otherwise undergoing project activities in
order to secure the cost efficient realization.
Yet, the last critical moment comes when the implementation is ready to
commence. In many cases the change developers poses the authorization to imple-
ment the changes and tends to put their results immediately into operation. This
may lead to unpredictable operation and destabilization of either project or its
products. Therefore, the implementation shall be consciously released: Grouped
together with other realized changes, optimized as to the time of the release and
fully controlled (Fig. 9.2).
At this stage the configuration adjustment, critical to further operation and
maintenance, is taking place. Any change, even the smallest means new configura-
tion and therefore has to be registered as such. Only then we have permanent actual
valid description, allowing for further efficient operation.
At least the initial observation of change impact is relevant to validate the
purposesness of the just implemented change. Lessons learned shall be recorded.
Finally whether the process goes this way or the change request is discarded at
any earlier stage for whatever reason, the change request source shall be informed
and change request ticket closed.
The presented below (see Table 9.1) techniques are allocated to the change request
handling phases presented in section 14:23 Change Request Handling Phases and
other PM processes.
14:40 Templates
The efficient change management process depends to large extend on a compre-

hensive and complete change request. An example of change request and a list of
changes are given in Tables 9.2 and 9.3 respectively.
Table 9.1 Techniques and tools for particular stages of change management
Stage in CM Tasks to perform Proper techniques and tools
Initiation stage with Setting critical values up to which a Systems of numerical indexes
reference to the change change request implementation must (10:00 EVM)
process management be filed. Information about the Comparison assessment
change management organization (11:00 QM)
and process
see Chap. 17, (02:00 COM)
with reference to the CR Assessment and choice of CR Absolute criteria (09:00 PRM)
handling process implementation, decision concerning Quantity criteria (09:00 PRM)
realization Quality criteria (09:00 PRM)
Risk analysis (13:00 RM)
Earned Value Analysis
(12:00 PSM)
ABC analysis (12:00 PSM)
Planning Detailed planning of changes Project structure plan
(project structure, changes, results, (07:00 P&S)
time, cost) and passing tasks to the Beta process (07:00 P&S)
executing competence centres Analogical process (07:00
(e.g. project leader, developers, P&S)
problem managers, etc.)
Schedule (07:00 P&S)
Interrelationship network
(07:00 P&S)
Milestone analysis (10:00
EVM)
Cost Analysis (10:00 EVM)
Implementation Implementation control with Milestone analysis
reference to the results, costs, time (10:00 EVM)
If necessary: exerting influence on Individual talks and talks
change implementation in groups (10:00 EVM)
Budget control (10:00 EVM)
Shadow costs calculation
(10:00 EVM)
Analysis of cost consumption
(10:00 EVM)
Diagram of the relationship
between the elements of
network (11:00 QM)
Data bases and reports
(16:00 KM)
see partial process of CM
Planning
Closing and Evaluation Integration of changes in the whole Structure of data set
system together with system (16:00 KM)
reception Data bases with news
Documentation of results resources (16:00 KM)
Passing information about changes to System of documents
the people interested management (17:00 DM)
see Chap. 17, 02:00 (COM)
14:40 Templates 203
Table 9.2 Techniques and tools for particular stages of change management
Change request (HERMES 2003 2003)
1. Identification
Number of this change request
Short description
Project identification and the corresponding configuration
Date
Author
2. Classification
Level of urgency
Desired time of completion
Category (error, problem, modification, extension, correction etc.)
3. Subject of the change request
Identification of results, which will be influenced by modification
Presentation of the actual state
State of the system
Conditions of surroundings/environment
Users reaction
Systems reaction
Effects etc.
Presentation of the target state
Explanations and justification of the anticipated reaction
States, terms etc.
Remarks (e.g. concerning the relation to the motions which have already been filed)
Table 9.3 Example list of changes

List of changes (HERMES 2003 2003)
1. Identification
Project identification
Date
2. For each change request:
Identification of a proper change request
Status of modification (put forward, intended, rejected, commissioned, done)
Number of a proper change request
Identification of the configuration containing the change
Person responsible for change implementation
Beginning / end of change
Trace of change requests: their status, phase of eventual implementation and

congruence with eventual other change requests may be efficiently handled with a
list of changes.
Table 9.4 Change rapport

Change implementation
1. Change request
Change request identification
Change request title
Change request date
Change request author
2. Change request justification
Description of reasons, leading to the change request
3. Expected change request implementation results
Description of the effects of implementing change request
4. Draft concept of possible solution
It presents an outline of the possible solution together with costs connected with its realization
5. Decision
Detailed descriptions of the decision together with the justification. Providing the names of the
participating change management board members taking decision and the date of decision
6. Implementation control
The realization of decision is under control, and the results are registered. It also includes the
control of change implementation acceptance protocols
7. Documents archieves/supplement
14:42 Documents of Projects Results
Complete information about each change must be gathered in one document,

enabling the overview of the history and results of a change (Table 9.4.).
14:50 Activities and Deliverables of CM
Tasks
Initiate change management
Initiate configuration management
Create a plan of configuration management
Results
Configuration and change management organization and draft of the change
management processes
Configuration management plan
14:50 Activities and Deliverables of CM 205
Tasks
Analyze project goals from the point of view of important determinants and
external requirements
Set Change Management Board operational
Select the roles owner in Change Management Board
Set criteria for change implementation
Specify the change request handling process
Decide about the configuration adjustment control
Chose and get tools necessary for change realization and change management
Control the change process from the moment of change request until its
implementation
Results
Implemented change process and plan of configuration management
Determined basic configuration
Tools ready to be used for change implementation, configuration and their
management
Tested change management processes
Tested change request handling process
Change management and configuration management integrated in a project
Documented and communicated change management process
Tasks
Assure proper change request registration
Direct approved change requests for implementation to proper processes
Trace and safeguard results/decisions
Adjust configuration
Results
Updated configuration
Registered and controlled change requests and appropriate decisions
Tasks
Pass configuration to the project results accepting organization with further
target of operations support
Assure change registration by the project team and users
Advice and implement the efficient change request process within project team
and users
Trace and safeguard results/decisions
Adjust configuration
Prepare a final report
Results
Implemented project results with a proper updated configuration
Registered change requests and proper decisions
Final report
Bibliography
Kommunikationstechnik; Informatiksteuerungsorgan Bund ISB, Bern
ISO 10007:2003 (2003) Quality Management Systems Guidelines for Configuration Manage-
ment, ICS 03.120.10, ISO Geneva
Phillips J (2010) IT project management: on track from start to finish, 3rd edn. McGraw-Hill, New
York
Phillips J, Gully SM (2011) Organisational behavior. South-Western, Cengage Learning Mason
15:00 Integration Management: IM
10
Quick Look
What Is It?
Whatever project produces it has to be integrated somewhere. Successful integra-
tion needs some actions.
Who Does It?
Integration Manager, assisted by Acceptance Test Manger and integration team
cooperates closely with Project Manager, Communication Manger and Documen-
tation Manager.
Only successful integration in all three dimensions: product, business process and
people leads to the successful project closing. Any of those missing may depreciate
significantly the whole enterprise.
What Are the Steps?
Plan and prepare carefully all three dimensions. Secure that the Communication
and Documentation are actualized and all Tests are passed. Then initialize the
implementation. Proceed if migration is feasible. Final Acceptance and les-sons
learned close the process.
What Is the Work?
Considerable effort is the good planning and preparation of all three integration
dimensions. Dependence on test results (quite a work itself!) cause unpredictability
and leads to reworking of plans, preparation, communication and documentation
updates. Careful implementation shall be assisted by timely matching gradual
controlled migration. Put significant manpower in people integration. Care about
lessons learned from each single step.
Product is in the scope of the project so its integration is casually well done. Less
attention is paid to business process integration so take care about it. It may be
complicated and time-consuming. The people perception is the key to successful
project closing so put it in focus of your efforts. It takes long and depends strongly

208 10 15:00 Integration Management: IM
on successful communication. You have to overcome all negative change impacts:

anxiety, uncertainty, anger, uncontrolled external information influence. Work on
people positive attitude than even minor deficiencies will be tolerated, and your
project perceived as a success.
Process
Integration Management process (see Fig. 10.1) plans, prepares, tests and secures
successful implementation of the project products and migration from the current to
the new state. Lessons learned shall be passed to KM process.
15:10 The Goal of Integration Management
The goal of the Integration Management process is to assure successful imple-

mentation of the project results into the existing environment (organization,
people, technology, processes), and successful migration from the current to the
new state reaching final acceptance of project sponsors and positive perception of
the users.
15:20 Methods
The ISO 21500:2012 does not foresees any particular process dedicated to the
integration (ISO 21500:2012 2012). The corresponding tasks are included in Work
Breakdown Structure WBS and controlled through the processes of the Control
Group. This is viewed as inconsistent: WBS contains the product (output) related
components and thus focuses on technical integration (First P explained hereaf-
ter). The Communication process, which should take at least part of the people
integration tasks (the second P also explained hereafter) is included in the
Control Group of ISO 21500:2012 and as such is not concerned with the people
integration. Very general process: 4.3.10 Manage stakeholders, does not really
mean the users explicitly. The process integration (the third P, see below) is
not treated by the standard at all it is left to the project set-up to define to which
extend it is included in the WBS.
In the authors opinion the conscious and managed integration of all components
is a project success factor and therefore worth of a dedicated Integration Manage-
ment process.
Integration management is carried out in three P dimensions:
First P: Product for technical integration,
Second P: for Process integration,
Third P: for People integration.
Technical product integration commences already at the initial phase together
with the first concept of results implementation into the target environment. In the
planning phase we specify this environment and define in detail the functional and
15:20 Methods 209
P&S, OM; PRM, EVM,

QM,PBM, RM, CM,KM,
COM
15:00
Integration
Management
Planning & Preparation
Yes
Update COM COM, DM
& DM?
No
No All tests
passed?
Yes
No Migration
feasible?
Yes
Migration &
3P -Integration
No
Final Acceptance
Passed?
Yes
Yes
Problems? PBM
No
Yes
Change Requests? CM
No
Yes
Lessons learned? KM
No
Fig. 10.1 Integration management process
non-functional requirements. In the realization phase, the systems are analyzed

and tested on the operational level. The implementation stage begins with the
integration test and ends when the full availability of the new system has been
achieved.
While most projects focus sufficiently on the technical integration, there is not
enough attention paid to the integration of users and business processes. Not
surprisingly, exactly in these areas we observe the most problems. We often do
underestimate the impact of a new product: even smallest changes in users
interface (see e.g. Generation change in personal computers) result in at least
change of workflow (new functions), and in many cases they may lead to even a
deeper organizational change.
People involved in business process reengineering firstly feel anxiety, than
uncertainty followed by anger. An uncontrolled external information influence
may amplify these feeling extending the duration of their impact. Only after this
period is over, curiosity may lead to some emotional engagement and necessary
motivation to act along new business processes. Only then the training and learning
begin to be effective.
Implementations example dispatch and customer centre

Implementation of a central dispatch and customer service system in a
logistics company improved the economic profitability by closing down of
about 900 decentralized dispatcher points. Over a thousand of employees
were affected by this step. In the new dispatcher centre 300 new employees
have been employed, out of whom ten have been employed to deal with
exploitation and maintenance of ICT infrastructure. Changes in the business
processes, beginning from the initial phase up to the successful ending lasted
4 years. Learning, training, support delivered by knowledgeable and experi-
enced coaches lasted 14 months until the employees were fully productive.
The assimilation of new organization and work results of the new dispatcher
centre employees, leading to truly effective cooperation in a company, lasted
3 years. Direct costs of business processes adjustments and integration of
employees amounted to about 3.5 million Euros. The cost of the production
and validation of technical systems reached about 20 millions Euros.
In case of project organization, based on a task oriented model, parallel to the

processes of technical development we initiate, plan, realize and implement busi-
ness process reengineering (see Chap. 2, 07:00 Planning & Scheduling: P & S).
This can cost up to 20 % of the total project budget. Moreover, the integration must
take into account the aspects of changes within the business processes as well as
mutual influence between new product, new business processes and environment.
Therefore, proper management attention is due to this activity.
Acceptance of the project results by the user and maintenance staff is most
frequently underestimated factor of project management (see also Chap. 14, 20:00
Human Resource Management: HRM). It is in a human nature that a person first
tries to assess the changes according to ones own value system before the changes
get absorbed. The better this process is prepared, the better the training has been
organized and the integration has been assured, the faster and more effective will be
the implementation. If it concerns a larger number of employees, the integration
process poses high requirements for the logistics and training units. The implemen-
tation, migration, including the right solutions to the above issues have to be
impaired with an economic profitability of the endeavour to obtain the final overall
project positive evaluation.
15:20 Methods 211
The example of implementation of a bar code in logistics company:

Technical adjustment of ICT system to process data from the scanner of bar
codes and its technical integration in the company cost totally about 2 million
Euro. It affected about 4,000 employees in the whole country. The integration
must have been carried out without interruption of services to the clients.
Training, support with knowledge and experience going hand in hand with
properly synchronized availability of the ICT infrastructure took about
3 years. Company has reached break-even in the fifth year since the beginning
of implementation of the bar code readers.
15:21 Implementation of Project Results
The implementation of project results concerns simultaneously the creation, vali-

dation as well as the business processes adaptation. The goal of implementation
process is the deployment of the project products along the original requirements in
a planned manner, leading to the target usability and full performance. It usually
provides new or improved functionality.
Implementation includes the following tasks:
Prepare and execute the implementation plan,
Carry out trainings for users ambiguously in product deployment as well as
business process modifications,
Carry out the implementation
Secure the target availability of project products,
Secure the maintenance (technical infrastructure and organization).
The scope of particular tasks decides about the assignment of functions between
project team members. It is advisable to define the roles of an implementation
manager, who coordinates all implementation activities, and trainings manager,
who cares about the optimal education of the users and maintenance manager who
organizes the smooth transition to regular operation.
Good practice standards are given by ITIL ((ISO 20000) (OGC, 2011; ISO/IEC
20000-1:2011 2011) and CMMI v3.0 (SEI, 2010).
15:22 Migration from the Present State to the Target State
The successful change implementation means very often to plan every minute of
the integration process and diligently carry out migration from the present state to
the target state. The key success factor is the proper management of the business
process changes. Therefore, by assigning the migration to the person in charge we
win at least someones focused attention. Migration covers the following tasks:
Analysis of a present situation in the area of technology
Definition of the state of processes/organization,
Definition of the target state: definition of the necessary changes, measures,
System productivity
Target availability/
technical parameters
Capabilities
of new
availability/ systems
technical parameters Responsibility /solutions
of present of migration
system/solutions manager
Capabilities of Responsibility of
present the
systems/solutions Implementation
manager
beginning of the migration realization System final time

beginning of the implementation realization implementation
Fig. 10.2 Competences and responsibility during integration
Elaboration of the fallback scenarios

Migration planning,
Realization of the migration stages (initialization phase, planning, realization,
implementation),
De-installation of the replaced systems/products.
Figure 10.2 illustrate the split of the responsibility between the implementation
manager and migration manager. Typical for most migrations is certain difficulty in
passing the project results into regular operations and maintenance. Therefore,
project manager has to take care about this initial operational phase.
15:23 Fall-Back Scenarios
The biggest risk in the process of integration poses a change from the present
solution to the newly developed one. Examples are:
The current solution was removed too early,
The new solution has not achieved yet the availability and technical parameters
necessary for correct operation.
In order to counteract those risks, we must prepare the fallback scenarios as a
substantial part of integration management.
Fall-back scenarios elaborate specific constellations of three Ps (products/pro-
cess/people) supported by implementation and migration teams, users and system
operators, which in case of failure in achieving the target parameters, are able to
assure work according to the agreed emergency plans.
The following tasks must be taken into consideration:
Fallback scenarios for the migration phase,
Fallback scenarios for regular operation,
Scenarios assessment and choice of suitable one,
Cost/benefit ratio of the resources deployment,
Trial tests of fallback scenarios.
15:20 Methods 213
Pilot
integration destructive
single test system test installation production
test test
test
Fig. 10.3 Synopsis of tests options
15:24 Synopsis of Tests Options
In the process of requirements definition, we must determine the measurement

criteria for the completion of those requirements.
In the process of validation (see task model in Chap. 2, 07:00 Planning &
Scheduling: P & S) tests are lined up in a logical sequence presented in Fig. 10.3.
Single tests and system tests are part of the P&S process. The integration process
begins with the integration tests followed by the pilot installation tests. It is
advisable to conduct some destructive tests (conscious, controlled downgrading
of the technical parameters of a system and functions).
As in other cases, by assigning the responsibility for the tests to test manager
we secure the optimal know-how transition between the phases. Best case test
manager is owner of the validation process (see Chap. 2, 07:00 Planning &
Scheduling: P & S).
15:25 Operations and Maintenance
The success of implemented new products depends strongly on the effective

operation and maintenance. Already in the project initialization phase, in the
specification of the requirements, the basic assumptions and provisions for future
operations and maintenance shall be determined.
The criteria which should be agreed with the users include among other the so
called Service Level Agreements SLA, which determine the availability and
technical parameters of the exploited project products. Availability, regulated in
such an SLA, includes the time slot required for the system maintenance service,
during which new components are implemented, updates are deployed, minor
corrections are done and system is tuned to better performance. In case of weekly
system services lasting 2 h, the maximum availability equals 98.81 % for a week. In
case of six system services, each lasting 6 h during 1 year, the availability reaches
99.59 %. If we need greater availability or longer service works, we must create
redundant or distributed systems.
The planning of those regular maintenance services shall be initialized during
the project and exercised as far as possible during the integration process. This
secures optimal transition from the project stage to productive exploitation.
Table 10.1 Differences between tests

Test goal Test goal Test subject Technique and tools
Single test A test of particular functions or routine Rather the so called
activities of the new system white box test
System test A test of a complete, new system, and the
system has not been connected yet to any
already existing productive system
environment. Mutual interoperability of all
functions and system stability are tested
Tests Integration Test of a new system integration with the
important test existing system environment (first of all test
for IM of tangent point). It shall be carried out in
integration test environment, which reflects
closely the production environment.
Performance and load are tested
Pilot Test of system operation upon integration
installation into productive environment. The last test
test before final acceptance. Focus on interfaces,
productive performance, and usability. It
resembles closely the full production,
however, in limited application area, e.g. 3
pilot test users of 500 target users
Destructive Tests concerning emergency scenarios or Rather the so called
tests way of conduct in exceptional situations. black box test
The products undergo controlled stress tests
(e.g. lack of current supply to a computer) to
check the limits and functional downgrading
15:31 Product Integration
Tests
For the purpose of technical integration we use tests, in accordance with the V-
model presented in Chap. 2, 07:00 Planning & Scheduling: P & S. Each test has
different purpose (see Fig. 10.1), and uses different tools (see Table 10.1).
System Diagnosis
Pilot installation tests offers first possibility to check the interoperability with the
production environment. The real (production) behavior shall be thoroughly exam-
ined. For this purpose system diagnosis concept shall be planned, developed and
implemented. Such diagnosis consists of a number of different tests. Their results
are compared with the reference values or numerical indicators according to certain
standards or previously reached results of comparable tests. The tests can be
performed by technological support and accumulated in an automatic diagnosis
program. Final goal is the fullest stability and functionality of the delivered product.
System Monitoring
Unlike the system diagnosis, system monitoring is periodical supervision of the
continuous system operation. It may be performed by a human. However, technol-
ogy plays here a substantial role, and today there is no area of our life, where ICT
would not be deployed in the monitoring. The results are presented in an easy
understandable form usually assisted by the recommended actions. Exceptions and
emergency situations case alerts, which often automatically initiate the proper
action (e.g. alarms on a mobile phone or emergency centre). In some operations
only exceptions are reason of any action (Management by Exceptions). In such
situations the automatic procedures usually underperforms and a human interaction
is needed.
Protocol Analysis
Besides the system diagnosis and system monitoring, another tool suitable in
integration and operation are product behavioral protocols, collected automatically
or manually. Critical is here an impact, which generating of a protocol may have on
overall system behavior. If it is intrusive, changed system behavior may not deliver
the information, which is sought after. Therefore, it makes sense to include the
protocol dumps already into the original production system. Its behavior remains
unchanged, while we benefit from the gathered information, subdued to the proto-
col analysis in the later stage. Sophisticated systems provide automatic or manual
data base update and comparison generating suitable recommendation of eventually
necessary actions (see Chap. 11, 16:00 Knowledge Management: KM).
System Operation Tools and Product Management Systems

Numerous available product specific tools (e.g. HP Open View, Tivoli, Big Brother
etc. for ICT products) support the diagnostics, monitoring and protocol analysis.
The so called product management systems handle today not only the technological
side of the product, but support effectively the business processes (e.g. customer
support) or human handling (user management). We have building management
systems, highway management systems, home entertainment management system
and so on. . . The choice shall be made upon deciding which operational criteria are
relevant to the operator. The manufacturer of the product is usually able to suggest
or even is interested to provide a suitable management system.
15:32 People Integration
Trainings and Work-Shops

Trainings and workshops are the main tools to introduce the new product among
users. They address directly the capability to handle the new product, but also
reduce the psychological barriers against the changes. Possibly vast repertoire of
communication means shall be deployed, visual, audio, sensual, self-elaboration.
The later, leading to the workshops, is considered as the most effective one. Trainer
and group mutual impact provide an intermediate feedback. This way the new
interrelationships and new processes can be mastered in the most efficient way.
E-Learning
In former times text books and exercise sheets supported the individual home
learning. These has been placed on electronic carriers and are available off-line
(e.g. compact disk) or online. The simplest are wisdom compendiums for knowl-
edge retrieval. Google is the most widely known and applied online tool. More
sophisticated tools are product specific and provide instant interactive and often
highly amusing form of self-learning. The latest unjustly usurps the sole e-learning
license, as all electronic forms deserved this description.
Coaching
To whatever extend trainings, workshops and e-learnings be provided, users will
always have questions, which arise once the put hands-on on a productive system.
By providing them with a possibility to verify their views with someone knowl-
edgeable we contribute the their better acceptance of the product and farther
improve their performance. Suitable coaching delivers this.
Floor-Walking
A particular way of coaching is the first day support. The so called floor-walkers are
available to users at the area of the product application they may resolve their
issues instantly on the spot.
Superuser
As the deployment of the new product progresses, usually either by denomination
or by sher personal knowledge acquisition, one of the users gains an authority in the
matters related to our product. Others, new staff, turn to this knowledgable person
for local support. We call them superusers. The others call them Mr Product. . .
Stakeholder Communication
Beside those, who are directly involved in the deployment of our product, there are
several other stakeholders interested or even involved in the changes and
innovations introduced by our project. Suitable communication along the
procedures described in the process of communication Chap. 17, 02:00 Communi-
cation Management helps to integrate also these people.
15:33 Process Integration
System Diagnosis Referring to the Process Surroundings

The techniques described above (see above section 15:31 Product Integration):
System diagnosis, Monitoring and Protocol Analysis can be also efficiently
deployed to support the process integration. In process system diagnosis we evalu-
ate the interaction of newly introduced or changed processes within their remaining
15:50 Activities and Deliverables of IM 217
environment. We may stipulate intentionally certain actions to test the process

landscape.
Monitoring and Protocol Analysis can be used during the integration process,
they are, however, rather means of continuous operation improvement and as such
subject of the Quality Management Process (see Chap. 5, 11:00 Quality Manage-
ment: QM).
Emergency and Exception Scenario Tests

Together with new systems we also implement new emergency and exception
handling scenarios. The V-model approach is recommendable here as well. In the
first step the isolated particular process chains are initiated and tested for their
emergency and exception handling performance. Once acceptable, there are
integrated within the process environment and tested along their impact in emer-
gency and exceptional situation on other interconnected processes (see Table 10.1
above). Sending down the system erroneous packages (like e.g. bomb simulation
luggage in air cargo logistics) we can trace the weak point. Scheduled (protocol
analysis) or upon demand initiated human interviews provide the necessary data
about how prone is the whole process landscape upon emergency and exception
situations caused by our new product.
15:40 Templates
Well planned and organized Integration process is reflected in the integration and
migration concept. We must regulate the items listed in Table 10.2.
15.42 Documents of Project Results
Example of the project results is a.o. the description of the new or modified
processes. The document includes the items listed in Table 10.4:
15:50 Activities and Deliverables of IM
Tasks
Create a system of integration management, taking into account internal and
external standards, guidelines and norms
Results
System of integration management
Table 10.2 Integration process document example

Integration and migration concept (Hermes 2005 2005)
1. Aim of document
2. Requirements
Description of 3P-requirements with reference to the integration and migration
3. Integration concept
Describes the process of integration, and in particular:
Functional and non-functional integration
Initial data feed in and system set-up
Operational concept of the new product
4. Migration concept
Describes the migration process, and in particular:
Functional and data migration
Parallel exploitation of the existing product and the new one being the result of a project
Emergency, exception and fall-back scenarios
5. Planning and organization
Integration and migration organization
Time schedule
Resources (personnel, material measures, services)
Communication concept
6. Taking account of the possibility of risk appearance
Integration and migration organization
7. Deinstallation of the replaced components
Describes the type of measures which are necessary to remove the replaced components, and in
particular:
Removing the superfluous material
Documentation of the last Products/Process/People constellation prior to changes
Communication concept to the organizational units affected by migration
The optimal tests are developed and documented in the test concept which includes the items listed
in Table 10.3:
Tasks
Preparation of test concept
Creation of the integration and migration plan with the following aspects:
Product
People
Processes
Plan of trainings, workshops, e-learning and coaching
Preparation of emergency scenarios
15:50 Activities and Deliverables of IM 219
Table 10.3 Test concept example

Test concept (Hermes 2005 2005)
1. Aim of a document
2. Test goals
The description o tests goal, taking account of the output situation, known problems and
assumptions from the model of quality management
3. Test scope
It includes the detailed (organisational and technical) external requirements, test assumptions,
terms concerning the type of a test and its discontinuation, test surroundings, test infrastructure,
configuration management, data concerning the test and test organization
4. Test procedures
4.1. Test methods and cases of test application
It includes testing methods and the overview of test application possibilities
4.2. Classification table
A classification table documents a proper relationship between the tested objects and the
applied tests
Table 10.4 Integration process description example

Business processes description (Hermes 2003 2003)
2. Overview of the processes landscape (level 0)
Description, presentation of the birds view of the whole landscape
Identification of the changed parts
3. Structure of the processes (level 1)
Process and sub-processes diagram
Process and sub-processes description
Planned or deployed process scenarios
Process performance measurement systems
Roles
4. Activities (level 2)
Down level of the process description
Plan of time and delaines outlay
5. Documents and Instruments
Instructions how to execute the process
Users Manual
Sheets
Service and operations manuals
6. Appendices
Test protocols
Relevant process changes
Additional documentation
Results
Test concept
Integration and Migration plan
Test plan
Emergency scenarios
Tasks
Carrying out integration tests, trial work tests and destructive tests
Trainings, workshops and coaching
Verification of emergency scenarios
Process adjustment
Preparing final documentation
Results
Protocol/minutes of test results/report on test results
Integration and Migration concept
Documentation
Tasks
Carrying out integration tests, trial work tests and destructive tests
Trainings, workshops, and couching
Carrying out integration
Carrying out migration
Communications about the new system
Preparation and making the documentation available
Documentation of the results in accordance with the requirements of the process
of knowledge resources management (see Chap. 11, Knowledge Management:
KM)
Results
Protocol/minutes of test results/report on test results
Integration protocol
Migration protocol
Business Process Description
Completed data base KM
Bibliography 221
Bibliography
HERMES 2005 (2005): Fuhren und Abwickeln von Projekten der Informations- und Kommunika-
tionstechnik (IKT), Systemadaptation, Informatiksteuerungsorgan Bund ISB, Bern
OGC (2011) ITIL V3 complete suite lifecycle publication suite. Update 2011. TSO, London
SEI (2010) CMMI for services, version 1.3, CMU/SEI-2010-TR-034, ESC-TR-2010-034, SEI,
Pittsburgh
16:00 Knowledge Management: KM
11
Quick Look
What Is It?
Knowledge means understanding of patterns. Successful project management relies
on knowledge of the project team. There is certain knowledge everyone brings with,
and there is knowledge collected during the project course. This process secures the
efficient management and exchange of both.
Who Does It?
The Role of Knowledge Manager demands communicative handling and easy to
use yet efficient knowledge management (KM) tools mastering. In most cases a
person in charge of Project Management Office (PMO) is the best choice.
There is no project where everything to be done is available and known to persons
in charge. The willingness to share the intrinsic tacit as well as the newly acquired
knowledge, paired with a will to assimilate by others is the decisive success factor.
What Are the Steps?
Define the KM strategy, processes, technology, people and organizational culture.
Build an efficient easy to use knowledge management system and draft project
management handbook. Motivate team to engage willingly in knowledge exchange.
Moderate and stipulate consciously the knowledge flow. Secure appropriate storage
and retrieval. Encourage team to aggravate the knowledge to-wards wisdom:
understanding rules behind patterns.
What Is the Product?
Technology is a mean, not the solution. First the knowledge of the team has to be
evaluated and than the reasonable goal oriented KM strategy shall be chosen. Next
choose the most welcome PMO officer and set the truly working knowledge
exchange procedures.
Do not rely on technology and procedures. Knowledge is in the heads and the
willingness to share is the gate keeper. Do your utmost to motivate all in team to

224 11 16:00 Knowledge Management: KM
P&S, OM; PRM, EVM,QM,

PBM, RM,CM,IM,DM,BSC,
HRM,TM,CFM,COM,SM,L
16:00
Define/Review strategy,
procedures, develop KM
system, PMO, PMH
No
Any new
Inputs?
Yes
Extract and store the

knowledge
Choose the best way

to proliferate
Encourage knowledge
exchange
Do people No
engage in knowledge
exchange?
Yes
Is the
current KM good CM
enough?
No
Fig. 11.1 Support of knowledge circulation through work in a team and other tools
freely exchange their knowledge. Support them with means they wish to use, do not
impose your preferences and overburden with reports. Learn from drawbacks.
Process
Basic are clear strategy, procedures and the KM system. Project Management
Office and Handbook shall be built up. Than the cycle of knowledge retrieval,
proliferation and exchange shall take place. Verify if knowledge exchange works or
other reasons to optimize KM occur start CM request if justified. Routinely repeat
the process Fig. 11.1.
16:20 Methods 225
Context independence
Wisdom
Understanding
rules, underlying principles
Knowledge
Understanding
patterns
Information
Understanding
relationship
data
Understanding
Fig. 11.2 Understanding vs. context independence of knowledge related terms
16:10 The Goal of Knowledge Management
The goal of Knowledge Management is to encourage the knowledge exchange

between the team members to the advantage of the project and future undertakings.
16:20 Methods
ISO 21500:2012 foresees a process 4.3.8 Collect lessons learned with the descrip-
tion which fully fulfils the above named goal (ISO 21500:2012 2012). Despite the
focus on continuous knowledge acquisition and dissemination during the project
process is placed in the (project) Closing Group, diminishing the benefits to the
project in the earlier phases. For this reason, in the spirit of the process 4.3.8 Collect
lessons, the efficient knowledge in managed in the 16:00 Knowledge Management
KM process.
16:21 What Is Knowledge?
The term data is understood as the chains of signs without a structure and
independent of a context. The data with a clear structure, presented in a context
constitute information. Knowledge is the collection of information and
abilities, used by a person to solve problems. Knowledge is based on data
and information, however unlike them, it is always connected with certain
people (Probst 1999).
Knowledge & Context Independence
Whereas information allows us to understand the relationships, knowledge results from

understanding the patterns. The context independence increases. Profound knowledge leads
to wisdom the understanding of the rules and underlying principles (see Fig. 11.2).
The uniqueness of projects creates particular knowledge, which is paired with the
tacit knowledge brought in by the project team members to build the sound knowl-
edge base of the project. The profounder this base is, the better the project results are:
fewer errors and more likely to meet the goals on time and within budget.
16:22 Tacit and Explicit Knowledge
Tacit Knowledge
Tacit knowledge is bound with an individual. It is unstructured, personal, very often
context and life experience dependent, difficult to explain and mostly not
documented knowledge. Tacit knowledge examples are:
Personal unstructured knowledge and natural gifts
Capabilities, abilities and skills acquired during education
Team member knowledge about organizational processes in and around the project
Knowledge about project and cooperation
Undocumented personal knowledge about company, competition, market.
This knowledge is most relevant to the project course: it is highly operational
and efficient as used by its owner.
Explicit Knowledge
Explicit knowledge is the knowledge, which is documented on paper, in date base,
in mails, photographs and videos and available to others knowledge for example:
Project handbook
Company rules
Minutes from meetings
Data base of other realized or ongoing projects
Improvements proposals.
16:23 Tacit Explicit Knowledge Management Model
Tacit knowledge reflects certain unconscious (yet efficient) processes of an indi-

vidual, which remain vastly uncontrolled and unnoticed by a person.
Successful knowledge management in team is determined by the efficiency of conver-
sion between the tacit (unconscious) and explicit (public, available to others) knowledge.
Nonaka Knowledge Conversion Model

Nonaka and Takeuchi (1995) created a model, ever since then known as Japanese
Model of Knowledge conversion (see Fig. 11.3), which depicts well the processes
16:20 Methods 227
To
Tacit knowledge Explicit knowledge
From
Tacit knowledge
Socialization Eksternalization
Explicit knowledge
Internalization Combination
Fig. 11.3 Knowledge conversion model by Nonaka and Takeuchi
which take place during a permanent cycle of knowledge exchange between the
tacit and explicit knowledge:
16:24 Structure of Knowledge Management Levels
Knowledge Management Levels

Project Knowledge Management has three pillars:
Normative. The goals of the project shall be permanently present to all project
team members. The repetitiveness of the Planning & Scheduling Process (see
Chap. 2, 07:00 Planning & Scheduling: P & S) is way to refresh the goals.
Strategic. To realize the project tasks team members has to poses specific
knowledge. We elaborate this in the Planning & Scheduling Process mentioned
above, define the demanded skills in the Organization Management (see Chap. 3,
08:00, Organization Management: OM) and match the role owners, defining the
gaps as far as possible in Human Resource Management (see Chap. 14, 20:00
Human Resource Management: HRM).
Operational. This is the core target of Project Knowledge Management Process:
to implement the strategy in order to meet the project goals. In practice it focuses
on closing the gap between the target knowledge (which may also dynamically
evolve) and current tacit and explicit knowledge.
16:25 Operational Knowledge Management
The operational knowledge management targets the institutional encouragement

and support of knowledge conversion processes.
The following sequential sub-processes may be identified here:
Knowledge identification
Knowledge acquisition
Knowledge repository update
Knowledge distribution
Knowledge deployment
Knowledge Identification
Knowledge identification shall pinpoint the source of knowledge, level of maturity
of the subjected knowledge and tag it for future identification. Whereas it might be a
technical issue regarding the explicit knowledge it become a challenge if tacit
knowledge is considered (see sections 16:26 Externalization and 16:28 Internal-
ization below).
Knowledge Acquisition
Knowledge Acquisition proceeds twofold:
Extraction on demand
Articulation of the experience
Whenever we reach the situation in the project where specific knowledge is
demanded we go on shopping. Good identification allows us to proceed straightfor-
ward. Most fortunate case is the knowledge identified within the project team,
ambiguously tacit or external.
In case there is a lack of certain abilities to solve the existing problems and tasks,
it is necessary to buy information from outside of a project. It can be done both
through experts recruitment, cooperation with clients or suppliers as well as
through acquisition from other companies.
The articulation of the experience may be well supported by the project organi-
zational rules like e.g. summary or report of performed actions. Here we have two
cases of gaining the experience, which influence our capability to articulate it:
Structured experience like e.g. courses, trainings, predefined chains of actions.
Her we can already tag the knowledge to be acquired.
Randomly gathered experience: occasional, often unpredictable learning effects,
which strongly depend on the context and prior tact knowledge of the team
member. A sort of open questions and possibility to dump these random items in
e.g. mail to someone in the project organization might help here.
Knowledge Repository Update

Once we acquired the knowledge very soon we end up with recognition that unless
we prepare it in some way for further use, it overburdens the project and lead rather
to the deficiency instead of efficiency of operation. Knowledge repository update
deals with that problem. Along the identification and tagging system the acquired
knowledge is evaluated. If it is unique it finds its way into the repository along
with the identification for easy retrieval.
Knowledge Distribution
Knowledge distribution disseminates the already identified in the repository knowl-
edge. It may be still the tacit knowledge in the heads of few; it may be perfectly easy
to use explicit knowledge on the project share. The presentation form orients on the
16:20 Methods 229
consumer of the knowledge: some prefer off-line visual presentation, some like
direct telephone call.
It is not the aim that everyone knows everything on every subject. Target oriented
knowledge dissemination implements the normative and strategic levels of KM.
Knowledge Deployment
The deployment may be only in part controlled by the project organization. To
larger extend it is an issue of goodwill and motivation of the team member. We
encounter individual barriers, which hinder the applications of the gained
knowledge. Those may be both personal barriers (it is better to stay with the old
habits, than be open for something new), as well as cultural ones (seeking advice
considered as weakness). The readiness to use the possessed knowledge in projects
must be supported by shaping the cultural awareness of knowledge deployment.
Asking questions proves the readiness to learn and cannot be perceived as a lack of
competence. It is the responsibility of a project manager to create trust culture,
which is essential to the willingness to deploy the acquired knowledge.
In the following chapters we indicate how the operational KM supports the
knowledge conversion processes.
16:26 Externalization
Externalization takes place, when we attain to convert tacit knowledge into explicit
one.
Some typical daily situations reflect the need for the externalization:
The knowledge must be passed between two team members
Data and information must be immediately available for external project
partners in a form proper for them,
Knowledge possessed by particular team member, must be made available to the
project team and a company, so that in case of any problems we could reach fast
for experts help
How do we proceed?
We deal with tacit knowledge. The externalization can only take place freely; when
the subject person is truly motivated to deliver (we exclude here forced knowledge
pressing as inapplicable in project we consider in this book).
The suitable methods of identification might be:
Direct questioning
Tests, preferably amusing or interesting one
Hands-on experience with surveillance
The externalization on demand may be initiated with concrete problems to be
solved by a team member.
The externalization of the articulated experiences is promoted through encour-

agement of improvements proposals, scheduled reports, documented workshops
and meetings.
The externalization on demand may be initiated with concrete problems to be
solved by a team member.
The externalization of the articulated experiences is promoted through encour-
agement of improvements proposals, scheduled reports, documented workshops
and meetings.

The documented knowledge may be stored on a project share, file management
system in an identified and tagged form.
The distribution of the explicit knowledge follows the usual organizational paths:
subscribers, direct addressees, fora and other well defined ways. The questions
addressed are:
Is the knowledge significant for ensuing projects or for the company?
What content and in what scope it should be stored?
Does the knowledge being at hand concern ones personal data?
The deployment of the explicit knowledge may be partially induced in that specific
control gates on task progress which are set and the results are accordingly
evaluated. To larger extend it depends on motivation so the willingness of team
member to deploy it shall be stimulated by the methods de-scribed in Chap. 19,
06:00 Leadership: L, section 06:23 Engage.
16:27 Combination
Combination takes place when we intend to generate new explicit knowledge based
on the available one.
Good example here is the concept elaboration in a project.
Explicit knowledge is available. So it is rather a problem if we apply the correct
identification mechanism and know the right tags. The best way is an error-and-trial
approach. With a progress in our e.g. concept elaboration our queries are more
precise and our search better focused. This applies ambiguously to the project own
data (e.g. Customer Terms of Reference) as well as public (e.g. internet explorers).
The acquisition of the explicit knowledge is the process of extraction of the
identified items.
16:20 Methods 231

The repository of the identified explicit knowledge remains usually available so
there is seldom a necessity to download it. In most cases the successful identifica-
tion tags (e.g. links to the subject internet pages) are stored.
The distribution in this case deploys the same means as in case of externalized
knowledge (see section 16:26 Externalization below).
The deployment here is easier controllable, as the sub-processes of explicit knowl-
edge acquisition, repository update and distribution may be repeated as many times
as necessary. We all know the issue of several iterations of documents before they
get final acceptance by demanding customer.\
16:28 Internalization
The Internalization begins in most cases there, where the previous two processes
stops: at knowledge deployment.
We can elaborate a compilation of several documents and still have difficulties
to explain what we wrote just about (recall some exams?). The internalization
process is time consuming issue of cognitive capabilities and motivation.
The sources of (explicit) knowledge are available. The identification usually is not
an issue.
(Explicit) knowledge acquisition is neither an issue (see above).

Here begins a bit more complicated story. The personal intellectual repository (mem-
ory) may vary: some use their left brain side building the algorithmic relationships
with the new item; some place the items in the right associations oriented brain part
adding to the object groups creation (Langham 1966). Few of us use simple external
memory (like PDA) however, here we are already initiating the externalization
process. . .. We can observe here only and try to support the chosen way.
The knowledge is here internally processed. The distribution process addresses our
cognitive capabilities. We may try to stimulate certain mental processes; however,
the outcome is out of range for us.
The outcome of the internalized knowledge is in the rule un-predictable. By setting
certain goals we may try to stimulate specific direction where the solutions are
sought, yet it is neither time, nor finances nor goal limited. This is a typical case of
complex problem solution in the innovative areas.
16:29 Socialization
Socialization may be one of the most important knowledge development processes

in the project. We shall recall that in each project there is a substantial part of non-
explicit, i.e. tacit knowledge. Good organizations recognize the value of that
knowledge and support the socialization whole-heartedly (Schindler 2001).
It may be upon request, but in most cases it is random. Identification depends on the
attention of the acquiring person. If we already socialize, we usually accept the
persons in our nearest environment, which in turn facilitates the perception of any
random message. Target oriented persons solicit from the plethora of irrelevant
news these few messages, which contribute to the persons personal goals.
The proximity of someone might open consciously or unconsciously the knowl-
edge we seek. By ice-breaking during the first contact we create the atmosphere of
possible socialization.
The acquisition depends wholly on the willingness of the perceiving person. So the
source should be psychologically and socially accepted, the atmosphere shall be time-
stress-free and the communication shall be facilitated (rather coffee shop than disco).

Tacit knowledge development is as mentioned above at the internalization. Not
much can be done to support this sub-process here.
The distribution is the same as in the internalization. The direct social contact
allows for additional questions, clarifications which might help to place the items at
the right spot.
Knowledge deployment It is the same process as in case of the internalization.
There is a high risk of misunderstanding and thus wrong conclusions. We can
contribute by awaking the sensibility for quality and risk assessment.
During the whole process of message store management, the classification of the
knowledge gathered by employees plays a decisive role for its utilization and
further application. Transition from identification through acquisition, from
broad-ening up to information division, makes the employee constantly ask the
following questions:
Is the knowledge significant for ensuing projects or for the company?
What content and in what scope it should be stored?
Does the knowledge being at disposal personally concern employees?
Knowledge Generation and

Identification
Desktop tools
Support as a result of meetings
and creativeness
Business process support tools
Editing systems
Forms of team work

Knowledge Deployment Knowledge Aquisition
E-Mails Registration tools
Search engine Groups registers Theme search engine
information visuali- Multiplied information post Links processor
zation Support of information circulation
Collaborative management
Fittering Discussion meetings
Unstructured meetings
Knowledge Distribution Knowledge Repository

Shared info server Automatic classification
Information circulation Automatic summary
tools Documents collecting
Market of knowledge Motions
resources
Fig. 11.4 Support of knowledge flow in collaborating project team
The better the project partners understand the goals of gaining knowledge by a
company and they do it with a personal engagement, the higher will be the quality
and effectiveness of the gathered information.
Knowledge deployment leads to the generation and subsequent identification of

the emerging new knowledge. The operational knowledge management in collabo-
rative team loops, comprising both the tacit and the explicit knowledge (see
Fig. 11.4).
Hereafter selected technological and organizational techniques and tools which
support the explicit knowledge are introduced.
Motivation and human communication techniques and tools with impact on
tacit knowledge are described in Chapters devoted to Human Factor later in this
book.
16:31 Document Structure and Tagging
Structure of Data Base

The effectiveness of all organisational and technological solutions is given by the
accuracy and system logic of stored files.
Most search and aggravating engines apply certain logic while browsing the data
files. By designing and observing during project course the rules and structures we
secure the correctness of operations.
The structure of the documents shall follow certain logic familiar to the project
team. For example by specifying the file structure along L-Timer1 we can clearly
allocate the subject treated in particular document (all risk related evaluations may
be found in Chap. 9, 14.00 Risk Management: RM).
Advantageous is also to set the documents name convention: e.g. M for
Minutes, R for reports, followed by the title key word, two-digit version and
date of generation/change.
The tagging convention may go as far as to define the internal single items names
and position when e.g. table aggravating tools are applied.
Time intense is the appropriate tagging. It is mostly company wide ruling, so the
projects has nothing else than just to follow.
16:32 Data Repository and Retrieval Tools
Paper File Archive

Conventional measures such as papers archives etc., are sufficient in small
undertakings. In projects with several team members and duration of 12 Years
gathering, processing or analysis, repository and retrieval of information are effi-
ciently supported by electronic systems.
File System
The simplest and already well established in project management practice are file
systems. All data are stored in a linear tree structures. Access is granted basing on
the file system access rules or roles right in active directories.
It is purposeful to set a network file system, which makes the data base less prone
to single failures and allows different people to have access over the network. Team
may use Intranet, sponsors and stakeholders Intranet Plus and other interested
groups Internet.
Knowledge Data Base

The limitations of a linear file structure are prohibitive in wide knowledge dissemi-
nation. Possibility to create various chains, queries, cross evaluations and statistics
paired with automatic version control favours data base application. Several large
worldwide operating companies like IBM or Accenture manage their corporate
knowledge with such tools. Draw-backs are time intense data feed-in processes and
particularly in case of project know how mostly inadequate responses to project
management related queries. Knowledge data bases are effective in longer term,
less variable know-how storage like e.g. particular technical solution.
Collaboration Platforms
Collaboration platforms, as e.g. Sharepoint or Knowledge Tree combine the access
control with data base and distributed simultaneous work in teams, which may be
geographically dislocated.
Search Engines
Search engines, as e.g. simple Internet browsers help to find the saved data or
information primarily in file systems, but few can handle data bases as well.
16:33 Knowledge Evaluation Tools
Analysis with the Use of Creativeness Technique

Simple data analysis can be conducted using the creativity techniques or pro/contra
arguments balance (Chap. 2, 07:00 Planning & Scheduling). We search through
stochastically choosing singular items. However, the final result might be too
subjective. Due to that, such analysis shall be carried out independently by several
people, who at the second stage compare and discuss the received results. The
analysis can be also carried out by a team of experts (e.g. the Delphi technique,
Chap. 5, 10:00 Earned Value Management: EVM, section 10:34 Time Control
Procedures: Trend Analysis).
Analysis with the Use of Statistics Tools

Numerical, in particular statistical analysis can be carried out with the use of
statistics tools, the simplest: Excel calculation sheets. As in case of every analysis,
also here, in order to present a reliable and compliant results, we should first think
thoroughly what the goal of analysis is expected and in what way the data should be
tied with each other. This way e.g. the most frequently asked item or the total of
specific sources may be evaluated.
Data Base Queries

Another, rather simple possibility of data analysis is based on stochastic data base
query. Most frequently asked questions may be stored in inquiry programs, which
in case of need are called out by hand or initiated automatically. Such programs can
be also connected to an electronic system of numerical indexes, which enables
automatic inquiry in case of certain events.
16:34 Tools Supporting Workflow
Workflow Tools
Well defined procedures allow for the deployment of workflow supporting tools.
The results of an action are tightly bound with few limited possibilities of the
following steps. The actions are supported by possible scenarios, documents to be
Fig. 11.5 Workflow supporting tool example project management handbook
filled in, explicit knowledge available from the previous actions and does not
depend on any particular person, i.e. the tacit knowledge. Typical examples are
call centres. Workflow support is implemented also in a concept of project
supporting tool, where upon selecting particular action, the related explicit knowl-
edge (methods, techniques, project phase and so on) is displayed to the user (see
Fig. 11.5).
16:35 Project Management Office
PMO
The efficiency of explicit and tacit knowledge development and management can
be substantially aided through the dedication of selected project team member to
handle the Project Management Office (PMO).
PMO Activities
PMO secures that the explicit knowledge is well managed and documents reposi-
tory is permanently on the most recent level of actualization. Tacit knowledge is
supported actively by target distribution of explicit knowledge, communication and
organizational activities (e.g. getting workflow bound people working closer,
moderating the creativity (see Google example (Google 2012/2013)) and so on).
16:36 Project Management Handbook
Typical Project Management Handbook

One option while choosing the procedures to be followed by project team members
is to apply the company or broader standard. However, most likely some items are
irrelevant in our project (each project is by definition unique), other are not treated.
We find demanded actions without a word on how to execute it (methods,
techniques) and methods with no relevance to our project.
Homogenous structure, free of conflicts and

redundancies,
P&S ...
PM Requirements EVA RM IM HRM TM COM
ITIL, CMMI
Company
Best Practice
Check
Fig. 11.6 Recording and structuring of actions
Requirements Based Project Management Handbook

The solely reasonable approach is to identify what are the actions demanded in your
project beginning with customer expectations, your company formal and legal
requirements, followed by your goal dedicated intentions and then to choose the
proper methods, techniques, forms and checklists related to this specific action. The
following generic approach apply to all type projects.
Step 1: Record and structure expected actions in your project

Upon identifying all actions you put them in certain homogenous, conflict free (best
case: orthogonal) structure, adapting several filters: standards, best case, your
personal experience (Fig. 11.6 gives an example of L-Timer induced structure).
Step 2: Detail and weight the skills and requirements related to the expected actions
Project Management comprise between 500 and 2,000 actions (Lent 2010, page
270). It is unrealistic to expect someone to perform all of them the same best
way. Also not all activities has the same importance. So in this step we shall
choose and assign the relative importance of action (by e.g. dividing total of
100 % between 7 actions in the example below) and then weighting between
0 and 10 the relevance of the specific action in performance of a specific role. For
each role we define such a profile. The allocation is not binary: 0 or one; it put
more stress on certain activities (by allocating 10) and less on others (allocating
2). This way we may also define the fall-back responsibilities (deputies). Fig-
ure 11.7 exemplifies this approach.
Step 3: Answer how should the project manager carry out the activities?
Firstly we observe that the behaviour of specific role owner in project (e.g. project
manager) is given by a sum of rules: B-rules, which are always mandatory (B for
Basic, e.g. travel expenses form to be filled in) and such, which depends on some
event: R-Rules (R stays for Relative, e.g. the realisation may be started if
concept has been accepted).
Action Role
Activity importance relevance
Examples Relativ % 0 - 10
formulate project proposal 20 10
develop project vision from project proposal 20 10
draft the coarse project plan 10 8
write the project manual 15 2
define the project objectives 20 6
register the project 5 10
structure the library of results 10 10
Fig. 11.7 Step 2 Weighting actions and role relevance
Corporate rules
PS EVM RM IM HRM TM COM
Project Management
Behaviour = Function ( Rule R * Event

+ Basic Rule B)
Fig. 11.8 Step 3 Assigning the rules to the activities
All actions shall be performed along specific rules: methods, techniques, tools,
templates, checklists.
So now we search all rules which relates to the selected and weighed activities
and place them accordingly (see Fig. 11.8).
In the result we may reach the exemplary matrix as depicted in Fig. 11.9.
Please observe that in the above example few places are left empty. This is
frequently the case: a customer or our company requests from a project manager
e.g. to control the costs, but seldom define which method is to be applied by cost
evaluation, how the results should be written down (Tables or Text?), are there any
templates available or which checklist applies?
The requirements based project management handbook developed along the
above presented steps has following advantages:
Activities of demanded project management are defined clearly and without
contradictions
Activities are allocated and weighed allowing for priority decision making
16:40 Templates 239
Activity Activity Role Methods

import. relev. Techniques
Examples Relativ % 0 - 10 Templates
Checklist
formulate project proposal 20 10 R1 R5 B1 P&S
develop project vision from project proposal 20 10 R2 P&S
draft the coarse project plan 10 8 R3, P&S

B3
write the project manual 15 2 B1 B2 B8 P&S
define the project objectives 20 6 R1 P&S
register the project 5 10 B1 R3 P&S
structure the library of results 10 10 B1 P&S
Contents Project Manual =

Event oriented Rules R
Always applicable and Basic Rules B
Fig. 11.9 Activities and rules project management handbook
Only activity related rules are considered. We search for rules regarding the
activities demanded in our project. We disregard the rules irrelevant to us.
Only defined rules apply
If no rule regarding certain activity is specified, the project manager is free to
choose his behaviour
No unnecessary theory. Irrelevant activities or rules are omitted
The requirements based project management handbook is a clear contract
between the company and the project manager on what and how he shall do.
16:40 Templates
The following document regulates the use of project knowledge base (Table 11.1):
As an example the Project Management Handbook document is presented hereafter

in Table 11.2:
Table 11.1 Example knowledge management rules in project

Rules concerning KM
1. The aim of this document
2. Rules concerning the data retrival (data acquisition)
It describes how to use the tools of knowledge management system for project purposes. It also
includes the description of the users or their authorization
3. Rules concerning updating
It regulates how knowledge updating shall take place.. Also here we must grant right to particular
users, project partners, etc.
4. System availability
We must enumerate all possible known and planned breaks in the system (e.g. as a result
of maintenance work or updating) and pass the information about the breaks to the users in
proper time
5. Rules entailing statistical register
It includes statistical data concerning the utilization, breaks, etc.
Table 11.2 Example table of contents project management handbook

Project management hanbook
1. The goal of this document
2. List of Sources
It describes the sources of the information used in the following chapters
3. Actions and Rules of Project Management Processes
Actions and rules solicited from mandatory documents like purchase contract, company regulations,
structured and weighted, for example:
18 Chapters, which corresponds with each with one L-Timer1 Process
Goal or Scope of each Chapter (process)
Actions weighted against other in the process
Roles with actions relevance to the particular role
Identified methods, techniques, tools, templates, checklists for each action
4. Appendices
Additional informations like e.g. abbreviations, general reference documents
16:50 Activities and Deliverables of KM

Tasks
None
Results
None
16:50 Activities and Deliverables of KM 241
Tasks
Plan of the knowledge management strategy processes, people, organizational
culture
Identify the available tacit and explicit knowledge with suitable measures
Analyze the project goals with regards to the KM
Set the first estimation of knowledge deficits in team
Review with team the KM processes and organizational culture
Set Project Management Office PMO
Develop with team KM acquisition sub-processes
Develop the KM repository system
Develop with team the explicit and tacit knowledge distribution sub-processes
Set the initial knowledge in the KM supporting system
Develop and set the KM efficiency control system
Make first reviews of the KM efficiency in the project.
Results
Defined strategy, processes, organizational culture.
Identified tacit and explicit knowledge in project
Implemented processes of knowledge management
Project Management Office PMO operational
Project Management Handbook PMH elaborated
KM supporting system and repository operational
KM efficiency control system operational
Project team acquainted with project KM
Singular deployments of KM acquired in project verified.
Tasks
Keep PMO and KM supporting system operational
Stimulate team to develop both tacit and explicit knowledge
Update PMH
Reviews the KM efficiency in the project and execute the suitable actions
Results
PMO, KM supporting system and repository effectively deployed
Tacit and explicit knowledge developed
PMH updated and effective

Tasks
Same as in the Implementation Phase and additionally
Evaluate the efficiency of Project KM
Results
Project KM evaluation report
Bibliography
Google (2012/2013) Playful and creative Googles Zurich Headquarters. Posted 22 February 2012
by Slickzine, Los Angeles. http://slickzine.com/interiors/playful-and-creative-googles-zurich-
headquarter/. Accessed 11 Feb 2013
ISO 21500:2012 (2012a) Guidance on project management, ICS 03.100.40. ISO, Geneva
Langham ME, Rosenthal AR (1966) Role of cervical sympathetic nerve in regulating intraocular
pressure and circulation. Am J Physiol 210(4), APS, SAGE Publications, Thousand Oaks
Lent B (2010) Andragogiczny koncept ksztacenia prowadzenia projektow na Akademii Obrony
Narodowej 20082010, (Andragogical concept of project management education at the Uni-
versity of National Defense 20082010), Scientific Journal of the National Defense University
NDU, 3/2010. DNU, Warsaw
Nonaka I, Takeuchi H (1995) The knowledge creating company. Oxford University Press, New
York
Probst G (1999) Wissen managen; 3. Auflage. Gabler, Wiesbaden
Schindler M (2001) Wissensmanagement in der Projektabwicklung, 2. durchgesehene Auflage,
Josef Eul Verlag GmbH, Koln
17:00 Documentation Management: DM
12
Quick Look
What Is It?
Documentation describes the products, delivered by project, for service staff,
operators and users. Documentation Management secures its correct, complete
and recipient conform elaboration during the whole project course.
Who Does It?
Good documentation managers are project team members with an experience in
service, first level support (hot line) or in application of the similar products, or in
business field, where project results are to be deployed.
Service, Operators and Users in most cases were not part of the project team so
they do not have any knowledge about the product. The documentation of changes
is usually inferior. Yet, the recipients have to use and maintain the product in
some cases with vast financial impact. There-fore, proper documentation is crucial.
What Are the Steps?
Define the DM criteria for recipients: users, operators, service staff, and the
procedures. Develop the sustainable documentation management system. Each
new element in product specification turn into product documentation. Than
check what shall be changed in users and operator documentations. Inform the
initiator of the documentation input about the results of your actions. Initiate the
DM process changes if appropriate.
Nominate your documentation manager already in the project initialization phase.
Initiate the DM steps as soon as possible and get already first draft of documentation
separately for the users, operators and service based on project goals and
specifications. Include the validation procedures and results, as well as business
process considerations, in a recipient conform manner. Keep trace of all changes
and update the documentation duly.

244 12 17:00 Documentation Management: DM
P&S, OM; PRM,,QM,

CM,IM,COM
17:00
Re-/Define criteria,
procedures, develop DM
system
New qualified No
product Input?
Yes
Update service
Documentation
Update Operator No
/User Doc?
Yes
Update Operator/
User Documentation
Inform the initiator

about the status
Is No
the current DM good CM
enough?
Yes
Fig. 12.1 Documentation management process

Start with the first product specifications and actualise the documentation continu-
ously during the project course. Split the documentation into the recipient conform
results. Focus on what all really each recipient wants to know.
Process
Documentation Management first sets all the criteria, procedures and supporting
system and later during the project course continually verifies if reworking is
needed. Each registered input is qualified along the adopted criteria. If suitable
firstly the product, than the Operator and Users Documentations are adjusted. The
initiator is duly informed, whether his input is considered or needs improvements
Fig. 12.1.
17:20 Methods 245
Initiation Initiation Initiation

phase phase phase
Service
Document-
ation
Planning Planning Planning

Production Verification Business Operator
and Process -
Validation Adaptation Document-
ation
Implementation Implementation Implementation
User
Document-
Documentation ation
Management
Closing Closing
Closing & Evaluation & &
Evaluation Evaluation
Fig. 12.2 The phases changed names acc. to ISO Standard
17:10 The Goals of Documentation Management
The goal of the process of Documentation Management is to secure the financially

efficient service and operation of the project products and to ensure the fullest users
acceptance of the recipient conform documentation.
17:20 Methods
ISO 21500:2012 does not sees documentation as a process. Parts are covered by the
communication processes (4.3.38 Plan, 4.39 Distribute and 4.40 Manage commu-
nication), part as the working tasks in Work Breakdown Structure WBS (ISO
21500:2012 2012). However, the activities in a project, which target the post-
project product life cycle, determine the perception and acceptance of the project
deliverables. Therefore, binding and optimization of those activities into the docu-
mentation process are considered vital to the project success.
17:21 Documents Elaboration
Sources of the Documentation

Documentation of the project products originates from the three process areas (see
Fig. 12.2):
Production Process (which actually deliver the result)
Validation Process (which assure the conformance with the original
specifications) and
Business Process Adaptation (which handle the changes imposed by taking the
project products in operation)
and in each of these areas in all project phases :
Phases and Documentation Origins

Initiation (Goals and Requirements)
Planning (Concepts, Specifications, Terms of Reference (ToR), Architectures,
Business Process Adaptation Considerations)
Implementation (Product Description, Validation, performed Test Cases, Draft
Service Manual, Documentation of Changes)
Closing & Evaluation (Implemented Business Reengineering, Service Manual,
Operator Manual, Users Manual)
17:22 Service Documentation
Service Documentation shall comprise all the information needed to cost efficient
maintenance aimed to secure the agreed grade of service. In particular these are:
List of Service Documents

Functional and non-functional description of the product (Goals, Requirements,
Concepts, Specifications, ToR, all Changes)
Architectures, Interfaces, Implemented Security including all Changes
Acceptance Test Cases, Validation, Verification and Test Procedures and
Results
Documentation of Service Support Diagnostic and Maintenance Management
Systems
Documentation of Service Organization
Service Manual
17:23 Operator Documentation
Operators work on fully operational products adjusting their parameter to actual

business processes needs. They are in-betweens of Users and Service. The
operators documentation comprises:
List of Operator Documents

Functional description of the products with all Changes
Implemented Security and Operator Authorization
Description of Interfaces
Documentation of Users Settings and Parameters
Documentation of Operational Statistics and Data Collection and Management
Systems
Documentation of Service Contacts
Documentation of Business Contacts
Operator Manual
17:20 Methods 247
17:24 Users Documentation
Users are main target recipients of the project results. They should be documented
sufficiently to perform along the business processes, which are changed and supported
by the newly introduced products of the project. Users Documentation comprises:
List of Users Documents

Supported Business Processes Descriptions
Functional and Non-Functional Description of the product in terms of how it
support the Business Processes
Description of all parameters and settings along the default values
Documentation of Operator Contacts
Documentation of Service Contacts (Escalation)
Users Manual
17:25 Efficiency and Quality Criteria
Results and their documentation are created in the whole project course generally
by different project members. The efficiency and the quality of documentation is
determined by the criteria, set at the early project stages and the supporting
procedures and tools.
Contents Requirements
First the contents expectations of the recipients are to be met. Each of the groups
defines its needs. In most cases they include: short introduction to the scope and
purpose of the product, functions overview, user parameters and settings and fast
error tracking and corrective procedures.
As different the recipient groups are as different may be the understanding of
each of the above items.
Documents Recipients Anonymity

Basic distinguishing factor of MD target recipients is their anonymity. They are
usually not involved in the project and do not have any knowledge neither regarding
the product nor the team, that developed it.
Thus all documents have to be written in a way and in language, which is fully
understandable by outsiders. Project team members seldom think about that by
using very specific terms, context and abbreviations known to project team only.
Documents Usability Criteria

Crucial to all documents are recipients usability criteria. Each document shall be
created, written and finally presented to the recipient in language and form, which he
understands. We may use technology oriented description for service and operators,
we should use business language for the users. Whereas today English in service and
operation became de facto standard, users are local and expect their native language.
Recipient Way of Thinking as Acceptance Criterion

Finally, the logic in presentation shall correspond with the usual logic of thinking of
recipients: different for service engineers, different for operators and even more
deviant for users, which come from the target business.
Criterion of Fast Access to Needed Information

All recipients evaluate the usability by the quickness of references. In most cases
they take the documentation in hand facing the problem, which is not solvable with
the current knowledge. All means of fast search: keywords, margin notes, transpar-
ent structure, computer browser versions, just to name the few, are suitable means
to forge high recipient acceptance.
17:26 Documentation Manager
The core of the documentation is created by the project team. It is difficult for them to
think in an alternative way of anonymous recipient, and this three times different. The
documentation manager, who brings with him an experience of direct user, preferably
operator and service employee, is an optimal choice. Call-center employee, first level
supporter with some communication skills will do.
17:27 Deployment of Document Management System
Document Management Systems (DMS) are suitable support to reach the DM

process goals. Their basic advantages are:
DMS Advantages
Trace of all changes
Version and Document Release Control
Cost efficient storage
Fast Retrieval.
Fast retrieval is primarily given by the search keywords and logic. Here two
contradictory positions have to be merged and resolved:
Project Team Versus Recipient DMS

DMS deployed by the project team
DMS used by the service, operator and/or user organization.
The first one secures the proper content, the second one the proper usability.
Therefore, it makes sense, to consider both at the project initial stage and draft the
DM procedures in such a way, that the advantages of both can be fully exploited.
In the process of documentation management we can basically apply the same

techniques and tools, as in the process of knowledge management. However, we
must remember that in case of the process of documentation management, the target
17:40 Templates 249
group is not the group of managers or project team but the users and staff
responsible for system maintenance, so people from outside of a project. They are
in principle not interested in the project course history, but solely in possibly
complete documentation up to their needs.
17:31 Document Structure and Tagging
As in case of KM, the effectiveness of technological solutions is given by the

accuracy and system logic of the stored files.
The logic shall follow here the recipient groups and their individual criteria.
Structure shall depict the concrete needs of the recipients. Tagging e.g. the most
frequently asked questions.
17:32 Data Repository and Retrieval Tools
Paper File Archive

Basically same as above, all KM data repository and retrieval tools may be used in
DM as well. Yet in today practice the following tools are mostly used:
Paper file documents. They are easy to distribute among anonymous recipient.
File system, in particular with push-in option. This is particularly often deployed
in operator and service support, where the recipient address is known. This way
target oriented information may be passed.
DMS in connection with browser is currently gaining in acceptance, as the
manufacturers provide all and up-to-date product information available upon
choosing any search data in any browser. Access control allows to differentiate
the closed registered user access over Intranet from wide anonymous, unre-
stricted public internet access.
17:33 Data Management Systems
DMS (see above) advantages as it can handle documentation of various product

versions simultaneously.
17:40 Templates
17:41 Project Documentation
An Example of Users Manual Table of Contents is given in Table 12.1. below.

Table 12.1 Users Manual table of contents example

Creating users manual
1. The Aim of the document
2. Project terms of reference for Users Manual
The original terms of reference, specifications and other mandatory documents are here reviewed
form the point of view of the Users Manual requirements
3. Policy of product related information gathering
It defines how the information about the products shall be collected, assembled and stored during
the project course
4. Change handling policy
This chapter defines how the changes in ToR and in product related changes are to be entered into
the documentation
5. Presentation guidelines
This part contain the guidelines on how the Users Manual shall be presented, which are agreed and
accepted by the representative (opinion liders preferably) of the user
6. Documentation manger and his team selection
Here the role of documentation manager and the roles of his team members are specified according
to Chap. 3, 08:00 OM and the above considerations
7. Documentation management system
Documentation manager leads the selection of the appropriate DMS for the project
8. DM process planning
Here the basic parameters shall be evaluated and decided: deliverables, budget and time schedule
9. Project team trainings an coaching record
The efficiency of product related information gathering depends most of all on the right
collaboration of the project team. Suitable trainings and coaching secure this
10. Users Manual elaboration trace record
Evolutionary development of the Users Manual shall be traced for improvements
11. Users Manual elaboration process improvement record
We learn with a time and improve the elaboration of the Users Manual process, too
One of the results, Service Manual, must include the following information
(Table 12.2):
17:50 Activities and Deliverables of DM

Tasks
Evaluate candidates for Documentation Manager
Results
Documentation Manager chosen and on board
17:50 Activities and Deliverables of DM 251
Table 12.2 Service Manual table of contents example

Service manual (HERMES 2005)
1. The aim of a document
2. System outline
Describe technical connections between system components and provides the general description
of a system. It contains a.o.:
Technical architecture of a system and external interfaces
Goals and main functions of a system
General information about the safety, data protection, practical functions
3. Start-up
Initial conditions and parameters
Start-up procedure
Restart procedure
4. System operation and monitoring
Describes measures taken in order to keep the operations and monitoring of product and in
particular:
Traits of brake-downs and functional reduction of grade of service
Measures taken in order to evade breakdowns and functional downgrading
Measures taken in order to locate the source of problems and to remove them
5. Temporary stop-overs or deinstallation
Describes measures taken in order to finish or to discontinue the exploitation:
Exceptional and regular Stopovers or De-installation
Measures taken in order to temporary stopover or final deinstallation
Additional and final works
6. Rules/Arrangements concerning safety
Describes rules/arrangements and measures necessary to guarantee the required safety. They refer
to the area of infrastructure, organization and personnel as well as preventing disasters and
insurance
7. Enclosures
Technical comments and lists
Notification about errors (including reasons and measures leading to solutions)
Dictionary
Index

Tasks
Analyze project goals from the point of requirements concerning documentation
Analyze the scheme of product organization/product structure plan as a pattern
for document structure
Include the needs of recipients in the structure and presentation form of
documents
Appoint people responsible for documents management
Set the information gathering and change polices

Chose and get tools and DMS in order to support the process of documentation
management
Set the criteria of documentation information qualification
Work out the processes of documentation records inside the project team and put
it into practice
Determine the process of modification with reference to documents management
Register documents in the project initial stage
Plan the deliverables, time schedule and budget of DM
Plan project team trainings and coaching in information gathering
Prepare the DM improvement procedures
Results
DM Team and DM process operational
Determined documents structure and their versions administration
Implemented processes of documentation build-up
Ready to use DMS and other tools of documents management
Registered documents from the initial stage
Tested processes from the moment of putting it into records until the moment of
usage
Training and Coaching Plan to gather the information in project team
Tasks
Train and coach all project team members in information gathering
Assure information gathering by the project team
Assess the change proposals and include the changes in appropriate documents.
Keep the DMS and other DM tools operational
Elaborate the documents drafts
Results
Operational DMS, tools and information gathering under surveillance
All relevant project team members trained and coached
First drafts of documents available
Tasks
As in the Implementation Phase except:
Elaborate the final version and obtain the recipient acceptance for all product
related documents
Elaborate and made operational the after-sale-support of documentation
Bibliography 253
Results
Verified and accepted product documentation
After-sale-support of documentation operational
Bibliography
tionstechnik (IKT), Systemadaptation, Informatiksteuerungsorgan Bund ISB, Bern
ISO 21500:2012 (2012) Guidance on project management, ICS 03.100.40. ISO, Geneva
18:00 Balanced Scorecard: BSC
13
Quick Look
What Is It?
In Earned Value Management (EVM) process we evaluate the progress in elabora-
tion of project deliverables. BSC process is the only process of balanced evaluation
of all aspects, which are relevant in successful project realization: customer,
finances but also processes and people.
Who Does It?
Project manager is the second choice. Best process owner is the one responsible for
quality management (QM) or EVM process.
EVM provides progress information, QM informs about the deviations in
processes pinpointing possible reasons. Human Resource Management (HRM)
measures the people attitude towards the work and their expectations. We
have to balanced all in a reasonable, explainable to project sponsors and
customers, way.
What Are the Steps?
Verify the strategy of your company, that of your customer. Set the goals in various
perspectives relevant to your project. Define their mutual importance. For each
perspective Choose the indicators and the target values which defines their achieve-
ment. Collect the real data, compare with target value and assess the degree of
objectives achievement. Evaluate the results and propose the improvements. Repeat
this process periodically.
It takes some time to evaluate the strategies, choose the right perspectives
and to balance between them. Certain effort cost the individual objectives,
measures and the target values in each perspective. Set for data collection
and collect simultaneously for all perspectives. Assess each target achieve-
ment and balance measures and objectives along the perspective relative
value.

256 13 18:00 Balanced Scorecard: BSC
P&S, EVM,CM
18:00
Identify Company/
Customer Strategy,
Values
Choose and balance
mutually evaluation
perspectives
Evaluate all Evaluation procedure

Perspectives see 18:22
Balance all results and

improvement proposals
Any Yes
Change CM
necessary?
No
Yes
Lessons learned? KM
No
Fig. 13.1 Balanced scorecard process

Agree the value of each perspective with your sponsor and with customer. Assure the
measurability of objectives: choose right targets and assure that the suitable data
may be collected and evaluated. Analyze and if possible avoid the interdependent
objectives.
Process
In relation to the strategies and values the evaluation perspectives are chosen und
mutually balanced. Each perspective is evaluated. Final results are put together.
Necessary changes are initiated and lessons learned appropriately stored. The
process shall be periodically repeated; evaluation may be initiated by other pro-
cesses, too. Figure 13.1 depicts this process.
18:20 Methods 257
18:10 The Goal of Balanced Scorecard
The goal of Balanced Scorecard is the integral, overall assessment of the whole
project comprising both the current project results evaluation as well as an evalua-
tion of the project course, targeted in sustainable positive contribution towards the
implementation of the project handling companys strategy.
18:20 Methods
The BSC process closes the day of L-Timer project manager: he evaluates how
good the performance that day was, with an impact of human factor the night before
and the night to follow. The results might lead to changes directly affecting all
other L-Timer processes, Planning & Scheduling in particular. This starts just the
next L-Timer day morning. . .
Two processes in ISO 21500:2012 models the project evaluation: 4.3.7 Close
project phase or project and 4.3.8 Collect lessons learned (ISO 21500:2012 2012).
Although the titles and positioning in the Closing processes group are misleading,
the descriptions of both processes match the goal of the balanced scorecard of
a project up to the balancing. This is not tackled by these two processes neither by
any other. And as project manager needs clear and unambiguous guidelines, the
balanced scorecard process is a unique source of such a critical provision.
18:21 Balanced Scorecard Concept
Kaplan and Norton formulated thesis that can not be managed, what can not be
measures (Kaplan and Norton 1992).
Project management comprises the administrative measurable processes and the
more complicated to measure human factor related processes. The last have decisive
impact on the overall project performance.
Successful project management balances all processes in a way, which allows
project manager to set right priorities and undertake suitable actions.
In order to find a common base for the balance we shall:
1. Balance the importance of all processes mutually
2. Choose the specific objectives in each process and balance them mutually
between themselves.
3. Choose the measures for each objective and target values which define the
objective achievement.
4. Define the data measurement procedures.
5. Perform the measurements and compare the results with objectives measures
target values.
6. Balance all objectives results and all processes results and elaborate the final
project evaluation.
Fig. 13.2 BSC evaluation

Evaluation procedure
Set the appropriate

perspective data
No
New objectives?
Yes
Set new objectives,
measures, target values
Collect and analyse the

data
Determine the
degree of target
achievement
Elaborate conclusions
of evaluation
Evaluation procedure
end
An aggregation of processes allows for easier interpretation of the results. The

new aggregated views on project are called further perspectives. Two aggregated
models: Balanced Scorecard of Kaplan and Norton and Project Excellence are
presented later in this chapter.
18:22 BSC Balanced Scorecard Evaluation
An evaluation whether objectives have been achieved proceed the same way for all
objectives and all perspectives, including the objectives and measures revision
(see Fig. 13.2).
18:23 Kaplan and Norton Balanced Scorecard
Kaplan and Norton choose four perspectives related to the company strategy (see
Fig. 13.3) (Kaplan and Norton 1992):
18:20 Methods 259
Learning and
Personal
Development
Perspective
Vision
Clients Strategy Processes
Perspective Culture Development
Values Perspective
Financial
perspective
Fig. 13.3 Results assessment
Financial perspective
Clients perspective
Process development perspective
Learning and Personal development perspective
Financial Perspective
Financial perspective entails value measures, which characterize financial goals.
In case of a project it may be e.g. profitability index (e.g. the relation of costs and
profits).
Clients Perspective
In the clients service we evaluate comprehensively the relationship with the client.
We may set the quality or timely delivery as a criterion, but we may measure also
the general satisfaction of our client with the overall project performance and
attitude towards his needs.
Processes Development Perspective

We assess the quality of a process and care for process improvements in Quality
Management process (QM). However, where there is a limit of the optimisation and
where there is justifed action needed is settled in BSC. In processes development
FINANCES
Profitability Capital engagement
Fulfilment of
CLIENT Client satisfaction
client expectations
High quality level Process optimisation

PROCESSES
Optimal
Personal development
use of resources
TEAM MEMBER
Fig. 13.4 Results assessment
perspective we set the process development goals like e.g. change management
decision improvements.
Learning and Personal Development Perspective

Processes are implemented by humans. So their qualifications and motivation
directly influence the results of process execution. The improved performance
feedbacks to customer the improved deliverables. These in turn generate new
financial possibilities for project or project handling company. Figure 13.4 shows
these relationships.
The aggregation bears some risks of interrelated objectives as shown in
Fig. 13.5.
The resulting measures may mislead to false conclusions: not realizing that
motivation has an impact on process effectiveness we may focus on symptoms
dealing with clients satisfaction.
18:24 Project Excellence
Project Excellence (Project Excellence 2013) splits the perspectives into two
equally valued at 500 points areas:
Project management
Project results.
Further in each area arbitrary valued are individual perspectives as shown in
Fig. 13.6. The achievements in each perspective are measured against this maximal
value. The assessments are performed by project external auditors, which might
contribute certain objectivity here.
18:20 Methods 261
Increase in profitability
FINANCES
Increase in sales Costs reduction
Market share Increase in client

increase satisfaction
CLIENT High service
Improve in quality
quality
Higher effectiveness
of processes
PROCESSES Better Better usage of
planning resources
Better internal Higher satisfaction

communication of team members
TEAM MEMBER Better
High team member motivation
qualifications schemes
Fig. 13.5 Examplary objectives interrelation
Project management (500) Project results(500)
Orienta- Management Processes Clients satisfaction Goal

tion on (max. 80) (max.140) (max. 180) achievement
goal (max. 180)
achieve
ment Project Project partners
(max.140) partners satisfaction (max. 80)
(max. 70)
Resources Satisfaction of other

(max. 70) stakeholders (max.60)
Innovation and knowledge
Fig. 13.6 Method of project assessment project excellence
18:25 Kaplan and Norton Balanced Scorecard and the Project

Excellence Model Interrelation
Table 13.1 shows relations between the assessment along Kaplan and Norton
Balanced Scorecard BSC and the model of Project Excellence. Each area of
Kaplan and Norton BSC is mapped onto the Project Excellence assessment.
Table 13.1 Interrelation between the Kaplan & Norton Balanced Scorecard and Project Excellence
Assessment Project Vision, Processes Perspective
criteria of Excellence strategy, develop- of learning
Project points culture, Financial Clients ment and deve-
Excellence assignment values perspective perspective perspective lopment
Project Orientation 140 28 28 28 28
conduct (500 on goal
points) Conduct 80 40
Partners 70 35
Resources 70 35 35
Processes 140 70
Project results Clients 180 180
(500 points) satisfaction
Partners 80
satisfaction
Satisfaction 60 60
of other
stakeholders
Goal 180 36 36 36 36
achievement
Total 1,000 99 99 344 169 289
Shares in 100.0 % 9.9 % 9.9 % 34.4 % 16.9 % 28.9 %
percent %
The maximal values in Project Excellence perspectives are assigned indivually to

Kaplan and Norton BSC perspectives. In ambiguous cases a proportional split has
been adopted.
We observe, that Kaplan and Norton BSC perspectives obtain in Project Excellence
model predefined different values. So for example the area Financial perspective
plays rather a minor role (99 points). In contrast, the area Clients perspective has a
dominating position (344 points). Figure 13.7 shows these interrelations.
It is nevertheless recommandable to preserve the same selected method of BSC
over the longer time period.
The below techiques are described along the Kaplan and Norton BSC perspectives.
18:31 Clients Perspective Techniques and Tools
Surveys
Surveys and questionnaires are efficient tool to collect anonimous, thus better
reflecting the actual mood, project opinions of client representatives. This technique
is descirbed in Chap. 7, 12:00 Problem Management: PBM and also in (Kuhn und
Fankhauser 1996, 2009).
Vision, strategy, culture, values:

200
99 possible points
Project partners 150
development: 289 possible Finance: 99 possible points
points 100
50
max. possible numbre of points
Total = max. 1000 points
Processes: 169 possible points Clients: 344 possible points
Fig. 13.7 Interrelation between the Kaplan and Norton BSC and project excellence
Interviews and Checklists

Analogically, like in case of questionnaires, information about clients can be
gathered also through interviews. Checklists are suitable supportign tools here.
Feasible Client Perspective Objectives

Feasible objectives and measures might be (Phillips et al. 2012):
Measured value of an indicator or index of clients satisfaction,
Number of complaints for one client or a group of clients, together with the
efforts and costs needed to solve the problem,
The required time of reaction needed for each clients question, their order,
problem, etc.
18:32 Financial Perspective Techniques and Tools
Feasible Financial Perspective Objectives

Feasible objectives and measures might be:
Budget control: earned value (see Chap. 5, 10:00 Earned Value Management: EVM).
Profitability calculation: return on Investment (RoI) and pay-back calculations
(see Chap. 2, 07:00 Planning & Scheduling: P & S).
Internal Interest Rate (IRR); also called net present value of the project comprises all
interest rate charged cash flows (see Chap. 2, 07:00 Planning & Scheduling: P & S).
Concrete saving targets, limits on expenses or turn-overs.
Functional usability value.
Values elaborated in Balance of for and against arguments (see Chap. 2, 07:00
Planning & Scheduling: P & S).
18:33 Process Development Perspective Techniques and Tools
Systems of Process Numerical Objectives and Measures

Analogically to the systems of numerical measures in financial perspective, we can
also create systems of numerical measures concerning a process.
Feasible objectives and measures might be:
Estimated operational time (see Chap. 5, 10:00 Earned Value Management: EVM).
Number of production errors in a process.
Number of necessary procedural interactions.
Current productivity (efficiency).
Balance of Pro and Contra Arguments

Balance of for and against arguments serves to assess the immeasurable amounts
(see Chap. 2, 07:00 Planning & Scheduling: P & S).
Process Assessments and Appraisals

Process assessments and appraisals are carried out in order to gather information
about the processes in some standardized way. They are carried out with a certain
goal and require careful planning (see Chap. 6, 11:00 Quality Management: QM).
18:34 Personal Development Perspective Techniques and Tools
Observation
Observation is relatively effective technique to determine the present capabilities
and future areas of personal development.
Project team members should be rather observed in their natural, regular work
environment. Observation is very time consuming, thus carrying it out is limited by
time. The documentation is mandatory for proper evaluation.
It must be noticed here, that in case of observation, the real motives of project
team members performance are very often hidden from the observer. Thus, it is
suggestible to validate the observations with a third person, preferably another
project team member, in order to place the efficiency also in a function of motiva-
tion of observed person (e.g. highly gifted but unmotivated programmer might be
falsely judged by his work performance).
Surveys and Interviews

As in case of clients perspective similar techniques, namely surveys and interviews
may be deployed.
The assessment of team members situation may include following examplary
objectives and measures (Phillips et al. 2012):
Feasible Personal Development Perspective Objectives

Satisfaction with project organization, team members, project manager etc. This
numerical indicator is in strong correlation with the index concerning employees
replacements and absence.
18:50 Activities and Deliverables of BSC 265
Engagement in goals, values, culture and activities set by a company and a project.
We can observe multiple correlations with achievements and productivity.
Atmosphere in the place of work connected with communication, openness,
trust, return information etc.
Number and kind of complaints from project team members within certain
period of time.
Number of personal changes within certain period.
Number of absences within certain period.
Number of inquiries concerning reorganization received over certain time period.
Example
In Table 13.2 the possible objectives, measures, targets and perspective mutual
interrelationship are set and hipethetical results are evaluated. For the sim-
plicity of the example only one measure is given for each objective.
We have case of results between the limits, (e.g. Terms of Reference ToR
fullfilled) and results beyond: below the minimum (e.g. Satisfied with
work) and above (e.g. budget kept).
The results might be in percentage of feasible maximal objective achievements
(e.g. customer perspective) or even exceed (e.g. finances) if we allow to reach
more than 100 % objective achievement (e.g. budget kept).
We may have various distribution functions between the zero and maximal target
achievement (linear, heaviside, delta Dirac, nonlinar) as well as below and above.
Choice reflects our policy regarding the objective achievement evaluation.
18:40 Templates
The achievements during project course may be documented in different way. It is

recommendable to include the results of Balanced Scorecard. Exemplary report is
given in Table 13.3. below:
18:42 Documents of Projects Results
The financial results of a project may be given in a plan, which should include the
following elements (HERMES 2003 (2003)) Table 13.4:
18:50 Activities and Deliverables of BSC
It is advisable to perform the BSC evaluation at least in each project stage past
Initialisation or after the 612 months period.
Table 13.2 The example of balanced scorecard
266
Kaplan &
Norton BSC Objective in Zero Total
Pers. of 100 % perspective of 100 % Measure Target results Distribution Real data Reached % %
Customer 40 % ToR 60 % No of >8 of 10 <2 of 10 Linear 010 7 7/8 60 % 37.80
fullfilled acceptances at
first tests
Changes 30 % No of accepted >5 of 10 0 Linear 05 7 7/5 30 %
accepted changes unlim.
Satisfied 10 % % of positive >70 % <40 % Linear 30 % 0 10 %
with work feedbacks 4070
unlim.
of 100 %
Finances Cash Budget kept 80 % Deviation <10 % >15 % Linear 8% (158)/
spendings from budget unlim. (1510) 80 %
reduced 20 % 500,000 US $ > 500,000 <500,000 upwards 450,000 0 20 % 33.60
less unlim.
of 100 %
Processes Interactions Changes 70 % % of >90 % 0% Linear 50 % (50 %/
reduced implemented implemented limited (900 %)) 70 %
within 1 week
30 % No of steps <4 >8 linear 3 100 % 30 % 6.89
needed to do limited
things
of 100 %
Personal 20 % Team 100 % Team 100 % <100 % Heavi-side 98 % 0 100 % 0.00
motivated satisfaction
Totally achieved 78.29

13 18:00 Balanced Scorecard: BSC
Table 13.3 Project evaluation example

Report Realization of stage x of a project (HERMES 2003 (2003))
2. Summary
Short and clear summary of the next chapters. It takes max. two pages and preferably a different
paper colour is used for this purpose
3. Initial state
Results from the earlier periods
Framework conditions in accordance with a project management handbook
4. Results related to project goal achievement
Summing up the present results concerning:
4a. Project planning and project organization:
Project plan
Quality safeguard plan
Plan of Risk Management
Plan of Knowledge Management
Concept of implementation
Concept of training
System integration plan
4b. Economic profitability
Incomes/Expenditures
Budget
Financial indicators
4c. Team
State of knowledge and education
Effectiveness
Conflicts
4d. Clients
Questionnaire results
Presentation results
4e. Solutions and processes
Description of business processes
Organization description
Organization hanbook
Exploitation handbook
Application handbook
IT system
System requirements
System Design
Prototypes
Migration process
Migration method
We should also report on the level of safety and data protection requirements completion
(continued)
Table 13.3 (continued)

Report Realization of stage x of a project (HERMES 2003 (2003))
5. Ressources
Material measures
Personnel
Training
Services
6. Consequences
Effects (organizational, personal, constructive, regulations/guidelines)
In case of lack of realization
In case of postpones realization(in relation to a demanded deadline)
Assessment of risk rate
7. Motions
Approval of a report Realization of stage x of a project
Permission to begin the next stage
8. Enclosures
Supplementary documents
Position papers
Protocols

Tasks
Clarify the relevant strategy, mission, values
Draft the perspectives, objectives, possible measures and targets
Make a plan of BSC realization
Results
BSC draft and realization plan

Tasks
Gather data
Refine the current BSC structure, target values in particular
Conduct the BSC evaluation for the Planning stage
Decide and take appropriate measures
Results
Gathered data
BSC Evaluation of the Planning Stage
Eventual change requests and Knowledge Inputs
Table 13.4 Project results plan example

Plan of projects financial results
2. Projects own costs
All one-time costs of development(total costs) divided according to costs categories and sources.
Total costs, are transferred (amortized) to system costs accordingly to an expected period of
utilization
3. Own costs of exploitation
The yearly constant (among other things amortization of project costs) and variable full total costs
resulting from system utilization, its exploitation and infrastructure as well as maintenance/service
of a system, allocated according to costs categories and sources
3.1. System utilization
Costs of utilization (the indirect and direct users)
3.2. Exploitation/system infrastructure
Costs of systems operator and infrastructure, which are necessary to system exploitation
3.3. Maintenance/service of a system
Costs of maintenance/service born by users, operators and constructors
4. External costs
Cash flow based external project and operational expenditures (identical cost structure as in
internal cost plan)
5. Profits calculation
5.1. Measurable profits
5.2. Immeasurable profits
6. Summary
6.1. Comparison of costs/profits
6.2. Personal effects
Referring to time and quantity: increased demand, increased burden, reduction, relieve
7. Information concerning economic profitability
Information if the numbers have been estimated or effectively calculated
Reliability/risk states of the taken assumption/estimations: deadlines, costs, quality, quantitative
and voluminal development, etc.
Explanations and details concerning the above items (chapter)
Tasks.
As in the Planning Phase, repeated periodically if suitable
Results
As in the Planning Phase

Tasks
As in the Implementation Phase
Elaborate final BSC of the project
Results
BSC of the project
Bibliography
Kaplan S, Norton DP (1992) The balanced scorecard- measures that drive performance. Harvard
Business Review Vol. 70 No. 1. Harvard Business, Boston
Kuhn R, Fankhauser K (1996/2009) Marktforschung: Ein Arbeitsbuch fur das Marketing-
Management. Verlag Paul Haupt, Bern/Stuttgart/Wien
Phillips JJ, Bothell TW, Snead GL (2012) The project management scorecard. Routledge,
New York
Project Excellence (2013) The PE Model, IMPA, BD Nijkerk. http://ipma.ch/awards/project-
excellence/the-pe-model. Accessed 8 Feb 2013
Part II
Human Factor
Ms. Angelika Gifford, Microsoft EMEA Services Public Sector Head, Manager of the Year
# Microsoft
The chapters in this part have one common denominator: a human being. A
hectic life during a day is replaced by 2-h pace of processes at night called Human
272 Part II Human Factor
factors. Similarity is purposeful. The following chapters are systematically

elaborated:
20:00 HRM Human Resource Management
22:00 TM Team Management
00:00 CFM Conflict Management
02:00 COM Communication
04:00 SM Self Management (Work & Life Balance)
06:00 L Leadership
Human Interactions are complicated and never very crisp and clean in their
effects, but they matter more than any other aspect of the project work.
If you find yourself concentrating on the technology rather than the sociology,
youre like the vaudeville character who loses his keys on a dark street and looks for
them on the adjacent street because, as he explains, The light is better there.
Demarco T., Lister T. (1999) Peopleware: productive projects and teams. Dorset
House, USA
20:00 Human Resource Management: HRM
14
Quick Look
What Is It?
Human Resource Management (HRM) assigns the right people to roles elaborated
in Organization Management (OM), cares about their individual performance
deficiencies and their job satisfaction.
Who Does It?
It is advisable to charge someone in team with psychological background to manage
the HRM process. Casually project manager misuses HRM to strengthen his position.
People make project done. So the right role owner decides about the project fate.
His performance depends on his capabilities and his motivation. HRM takes care
about them.
What Are the Steps?
Verify and close pending process improvements and tasks. If there is a noe or
changed role perform the appropriate procedure. If there is unsatisfactory role
efectiveness or role owner unsatisfied start appropriate procedures, too.
Candidates recruitment including evaluation and personal development best to
outsource to professional HRM departments. After verifying all roles check if
Change Request or Knowledge Management shall be addressed.
What Is the Work?
Most unlikely you will not find an ideal match to the vacancy. In most cases you
have to manage projects with role owners already set. You have to assess the
deficiencies and the probability of improvements with right HRM measures. Bal-
ancing act is the adjustment of formal, informal roles and personal needs of all team
members. As people develops with project progress, the HRM has to be run
perpetually in order to secure the best feasible team performance.
Be attentive to personality traits and their impact on role performance. Plan
sufficient time to deal with role ownership deficiencies, evaluate thoroughly if
personal development might help. Care about people job needs.

274 14 20:00 Human Resource Management: HRM
Process
Firstly try to finalize all hanging issues, before you take on the new or changed role.
If there is one start the assignment procedure. Next check the efficiency of the role
owner as seen by the management and adversely verify the team member satisfac-
tion. Repeat until all roles are verified. Suggest changes, store knowledge and
reenter the process periodically (Fig. 14.1).
20:10 The Goal of Human Resource Management
The goal of Human Resource Management is the best possible choice of role owner,
continuous monitoring of his performance and personal needs and, if justified,
initiation of the appropriate personal development program and results assessment.
The sort of evolution on how the project team members are treated , which
project management approaches goes right now is well reflected by the ambiguity
of ISO 21500:2012 standard (ISO 21500:2012 2012).
Those who directly contributes in project are named without distinction: team
(with and without project manager), stakeholders, personnel, resources or human
resources, leading to incongruent treatment of all those persons in a project. The
processes in standard cover:
4.3.15. Establish project team. Staffing of the project, selecting the role owners, in
the group if Initiation processes
4.3.18. Develop project team, focused on motivation and performance, not
distinguishing personal and team performances (Implementation processes
group)
4.3.20. Manage project team: again the (team) performance is treated (Controlling
processes group)
The disparity may result in overall lost of the efficiency. The personal needs of
team member are not considered. The process presented in this Chapter streamlines
all the requirements related to a role owner in a single, unambiguous approach.
20:20 Methods
20:21 Human Resource, HRM, HR System
Most Human Resource (HR) definitions refer to the companies with continuous
mission. Projects by virtue are temporary occurrences. Surprisingly author could
not identify any appropriate definition in the literature. The ISO 21500:2012 is not
very helpful there, too (see above comments). Therefore, for the purposes of this
and subsequent considerations:
Human Resource in Project

Human Resource in Project is defined as all individuals which at least partially join the
workforce of the endevaour.
20:20 Methods 275
OM, CM,L
20:00
Pending process
improvements
and tasks
New or Yes Role owner

Changed assignment procedure
Role? see 20:22
No
Yes Role performance

Unsatisfying Role
improvement procedure
Effectiveness?
see 20:23
No
Yes Role owner

Role Owner
Satisfaction procedure
Unsatisfied?
see 20:24
No
No All
Roles checked?
Yes
Any Yes
Change CM
necessary?
No
Yes
Lessons learned? KM
No
Fig. 14.1 Human resource management process
Human Capital
In this context consciously we refrain from considering the team members as
human capital: their development and company contribution are not the primarily
objective of project manager. His basic task is to use in the best way Human
Resources dedicated to his project. The Grimshaw and Rubery (2007) definition
matches best here:
Human Resource Management

The Human Resource Management is about how organisations manage their workforce.
Consciously we refer to Human Resource System in differentiation from more freq-

uently used HRM Systems, which are almost exclusively related to Information systems
and follow here Armstrong from his 10th Edition (Armstrong 2006) congruating:
Human Resource System

The Human Resource System brings together in coherent way HR Philosophies, Strategies,
Policies, Processes, Practices and Programmes.
20:22 Role Assignment
A new role may have several sources: It may be a regular cyclical check, OM, CM
or Leadership process.
After the verification of the conformity of role description with the HR system of
the project and company the recruitment is planned (see Fig. 14.2).
Next, the recruitment and evaluation procedure may start. Advantageous is to
involve already chosen project team members in the candidates evaluation proce-
dure. The candidates may be accepted with some deficiencies. In this case the
personal development procedure, best outsourced to professional HRM unit, is to be
initiated. Here also fall the most common case: adjusting the roles with team
members inherited for whatever reason, which are to be employed in project.
20:23 Recruitment and Evaluation
In this sub-process the fundamentals for individuals performance are set. The
influencing factors are abilities, skills, personal traits, needs and personal value
system. Their mutual impact excludes the possibility of a priori set up.
The abilities and skills are defined in formal role description elaborated in OM
process. Suitable assessment means are assessments centre, interviews, trial
periods, certificates, questionnaires.
Among several currently deployed in HRM theories concerning assessment of
behavioural and mental impact of personal traits: Big Five (OCEAN) (McCrae and
Costa 1987), Big Three (Eysenck and Eysenck 1985), RIASEC (Holland 1997).
HL (Fleming 1981), VBDM (Spranger and Pigors 1928) best suitable for project
team members evaluation is based on Jung theory Myers-Briggs taxonomy MBTI
(Myers-Briggs and Myers 1980/1995).
The Myers-Briggs Inventory bases on the personal preferences between
extreems in four dimensions building a combination matrix of 16 types. Wideman
(Wideman 1998/2013) attempted to classify the MBTI-types for their suitability as
project team members. Using the same heuristical methodology, applied to statis-
tics retrieved from CAPT (CAPT 2013) more recently, we qualify up to 45 % of
total population as potential good project managers and another 45 % as team
members (followers, see Fig. 14.3). We contradict Wideman by stating that only as
less as 15 % are likely to be unsuited as team members. We agree with Wideman,
that the four extremes: ISTJ, INTJ, ENTJ and ESTJ (Thinking and Judging
20:20 Methods 277
Role owner
assignment procedure
Review Role Assignment

Rules according to
HRM System
Set
the recruitment plan
Recruit and Recruit and

Evaluate candidate Evaluate candidate
Procedure See 20:23
No Candidate
acceptable?
Yes
No Personal
development
necessary?
Yes
Develop and realize
Outsource to HRM
personal
Department
development
Role owner
assignment procedure
End
Fig. 14.2 Role assignment procedure in project
combined with introvert sensing/intuitive or extrovert-sensing/intuitive

preferences) expose indisputable project leadership potential.
The assignment has to take various aspects of the teams under considerations.
Getting best staffers together does not secure the best results as shows the following
example.
Apollo Syndrom
The name Apollo Syndrom is known as the epithet of an experiment in certain
company, in which teams with different levels of intelligence and education have
been set. The best employees were assigned to work in the same team, which was
named Apollo. Presumably, it should achieve the best results. However, this teams
results were the worst. It resulted from the team members behaviour, where each
Fig. 14.3 MBTI-preferences with project suitability heuristics
team member attempted to convince other to his/her concept. Due to that, there was
a constant debate instead of work, which resulted in so bad effects (Litke 2007).
Personal Needs
The member of project team must basically have, during the project work, possi-
bility to satisfy his personal needs. The degree of needs of a candidate, which we are
willing to satisfy, is put in balance with the potential, which his skills, abilities and
personality traits open.
There are two major theories in classifying human needs. One is Maslow
pyramid (Maslow 1954) with hierarchical deficit and growth needs as shown in
Fig. 14.4. The lower level needs are stronger. Therefore, they have to be satisfied
before the upper are to be considered. The motives of growth can never be fully
satisfied and thus they are responsible for a constant individual and social
developments (Cadle and Yeates 2008).
The alternative Two Factor Theory of Herzberg (Herzberg 1987) distinguishes
hygiene factors, which largely correspond with Maslows deficit factors and moti-
vator factors corresponding with Maslows growth factors.
Candidates evaluation may be optimized by estimating to which degree the
prospective tasks match the candidates personal needs, in particular growth/moti-
vator factors (Glowitz 1999).
20:20 Methods 279
Herzberger Maslow Growth

Self-
actualisation
Motivator Self-esteem
(recognition, status,
prestige, respect)
Social motives
(contact, love, affiliation)
Deficit
Hygiene
Safety motives
(protection, worry about future, relief from fear)
Physiological needs
(hunger, thirst, breathing, sleeping...)
Fig. 14.4 Pyramid of needs according to Maslow (1954) with Herzberg (1987)
It is advantageous in a project to:

Organize a team, with reference to social motives, in such a way as to develop
the feelings of relation (we) directed on the common project goal,
Assign the roles, in relation to I motive (self-esteem: status, prestige) would not
favour or hurt anybody and the relations were respectful,
Leave enough freedom in roles shaping for self realization.
Personal Value System/Ethics/Moral Behavior

The decisions taken by a team member are stipulated by his personal value system. The
external (social) value system may vary from internalized subjective values which
forms the ethics of an individual. Moral behavior is the one, which is congruent with
ones own value system (Lent 2012). Team member, and in particular project manager,
wins the necessary credibility and acceptance only if his behavior will be moral and his
personal ethics will match that of the majority in the team (Galewicz 2010).
Personal ethics may be qualified in one of the four models, consequential or
utilitarian type, with not so encouraging results from surveys (Helgadottir 2008).
Szczupaczynski (Szczupaczynski 2009) speaks about the ceremonial adaptation of
formal ethical standards with separation of pragmatic and moral interpretation of
ethical standards and elusion of normative process of qualification between good and
bad. Useful guidance to evaluate the candidates and to assess their ethics and moral
we may find in integral humanisms and value system of Max Scheler (Scheler 1994).
20:24 Role Performance Improvement
All authors agree, that the individual performance of team member is influenced by
his/her motivation in magnitude not only a percentage: 1:3.4 (Boehm et al. 1984), 1:4
High Anxiety
(high challenge Challenge
inadequate skills) commensurate
with skills
Degree of
challenge
Boredom
(lots of skill
Flow channel little challenge)
Levels of capability High
Low
and skill
Fig. 14.5 Productivity flow channel
(Boehm 1981), 1:5.6 (DeMarco and Lister 1999), 1:10 (McConnell 1998). Motiva-
tion may compensate to certain degree the deficiencies in skills or abilities. McGinnis
(McGinnis 1985) call it Pygmalion effect, when average people, who never worked
together and accidentally joined a project, being well motivated behave like gifted,
uncommon geniuses, building the well functioning team together. An Environment
(Team, Project Manager, Office, Company) is here a multiplicator.
Productivity Environment * [Motivation function (time)]
Whatever the internal (intrinsic) motivation of potential candidates and project

team members would be, as soon as project takes it course it began to depend on the
relation between the capabilities and skills on one hand, and tasks, which they are
entrusted, on the other one.
Motivation ((Capabilities and Skills)/Challenges) * Personality Traits * Luck Coefficient
While keeping the balance in matching the capabilities and skills against the
challenges we have a good chance in obtaining high motivation of project team
staff. Mismatch, as a consequence of personal projection (it went wrong, all will
go wrong, causality theory of Heckhausen (Heckhausen et al. 1987)) will lower
motivation and subsequently productivity. Similarly, unused skills lead to bore-
dom and loss of motivation.
When environmental, skill and individual motivators are in place, flow
(Czikszentmihalyi 1990) or the highest productivity possible is reached (see Fig. 14.5).
It may be noticed, that productivity and motivation are transient in nature: they
may change rapidly and thus require permanent care by project management.
Challenges, which one faces do not change that rapidly. Here, the longest time
to change takes the capability improvements and development of skills.
We should avoid employing new team member when his skills exceed his
prosperous tasks (leads to boredom) and when the deficiencies can not be bridged
over by the personal development plan (leads to anxiety). In case of renewed
evaluation of already employed team member by applying these criteria we may
have to initiate a change motion (change request).
20:20 Methods 281
Role performance
No Personality
traits allow improve-
ments?
Yes
Yes
Informal Roles
need adjustment? Formal to Informal
Roles Adjustment
No
Potential
No for personal
development?
Yes
Develop and realize Outsource to HRM
personal Department
development
Performance No
improvement CM
successful?
Yes
Role performance
End
Fig. 14.6 Role performance improvement procedure
If the person is or will be deployed within the Flow Channel we evaluate if the
personality traits are not prohibitive to any adaptation (e.g. eldery team member
unwilling to adapt).
If changes are possible the informal roles in team shall be examined and in case
of necessity personal development shall be initiated and realized (see Fig. 14.6).
20:25 Formal to Informal Role Adjustment
Formal roles express in general the expectations which role builder has concerning
the tasks and the quality of their execution. HRM do its best to choose the best role
owners. Yet, the team dynamics lead to the development of informal roles, which
have an impact on the individual performance (the environment factor in our
productivity relation earlier in this section).
Table 14.1 Informal roles according to Denisow (Denisow 1999)

Mediator
Show solidarity, increases others status, helps and rewards
Show satisfaction, laughs, jokes, tries to unstress others
Expresses approval, understands, cooperates, expresses agreement
Active co-organizer
Gives tips, instructions
Informs about his/her task, assessment, analysis
Directs, informs, repeats and confirms
Active partner
Asks for direction, information, repetition and confirmation
Asks for opinion, assessment and analysis
Asks for time, instructions, and possible way of conduct
Passive team member
Opposes, refuses to help, shows passive refusal and formality
Is stressed, asks for help, and withdraws
Is hostile, defends himself/herself or stays in the same position, does not treat other people as
equal
Example
John fulfils faultlessly a task of analyzing the actual environmental legal
constrains in an ambitious task, which involves several 100 people from around
50 companies. Project team prepares to move a bridge some dozen meters down
the river. He works mainly with internet and legal data bases.
John is also a passionate volley-ball fan. He chairs the national volley-ball
association and organises each year successfully competitions of 24 teams
countrywide with all together over 20,000 spectators.
It is only but natural, that other team members frequently ask him for his
advice on some organisational issues, sparing themselves the awkward consul-
tation with construction manager, located in next city.
John formal (environment specialist) and informal (decision maker) disperses.
The informal network, which emerge in project teams may impact positively the
performance (colleagues of John are faster) and negatively the project course
(construction manager will not be informed about all, may be crucial issues).
The personality traits and other roles one play in his life influence his behaviour
in a team (Denisow 1999). The resulting informal role expresses the expectations
one has with regards to his contribution to the team and towards the mutual
communication in team. Denisow distinguishes four informal roles (Table 14.1):
Meredith Belbin (Hogan 2007; Belbin 2010) observed for 9 years managers
behaviour in Henley Management Game and drafted originally eight, later adding
ninth, informal roles in team (see Table 14.2). The denominators used in other
sources are extended in brackets. The attractiveness of Belbin approach is higher
precision of type identification, proximity to Myers-Briggs taxonomy and
Table 14.2 Belblins taxonomy of informal roles in team (Hogan 2007) extended
Role Features Positive qualities Allowable weakness Contribution
Chairman (Co- Calm, controlled, self- Evaluates contributions on their merits- Average intelligence and Clarifies goals,
ordinator) confident tasks oriented, not prejudiced creativity, off-loads his work Identifies problems,
establishes priorities,
Defines roles
20:20 Methods
Summarizes feelings of
the group
Shaper High-strung and Energetic, willing to challenge groups Irritable and impatient, offending Identifies roles, tasks, and
dynamic, courageous performance responsibilities
Pushes group for
performance
Creative thinker Individualistic and Bright and imaginative Impractical and dis-organized, Generates ideas
(Plant) unorthodox bad communicator Generates solutions
Criticizes current actions
Evaluator (Monitor) Sober and un- Discrete and hard headed No leadership ability Analyzes problems
emotional Clarifies issues
Evaluates others
contributions
Negotiator (Resource Extroverted, curious, Ability to build relationships Easily bored, over-optimistic Brings in ideas from the
investigator) communicative outside
Team worker Pleasant but mild Responsiveness to people, promotes team Indecisive in crisis Emphasizes task
spirit completion
Promoting sense of
urgency
Finding errors
Company worker Conservative and Organized, disciplined, hard-working Inflexible, resistant to change Focus
(Implementer) predictable Planning
Finisher (Completer) Orderly, conscientious Perfectionism Worried about small things Supportive and helping
and anxious others
Building on others ideas
283
Specialist Single-minded, self- Dedicated, knowledgeable, skilful Contributes within limited area, Solves complicated issues
starting, get lost in details Trouble-shooter
Fig. 14.7 Role owner

Role owner
satisfaction procedure
Personality No
traits allow higher
satisfaction?
Yes
Yes
Roles
adjustment?
No
Potential No
for personal CM
development?
Yes
Develop and realize Outsource to HRM
personal Department
development
Role owner
End
consideration of the dynamics in individual behaviour: each role owner can origi-
nally develop to any of the nine Belbin roles. Ideal team would consist of nine
persons. In smaller teams, several roles are fulfilled by one person. According to
Belbin only when all informal roles are balanced, the team works successfully.
Concluding: in HRM we have to:
Balance carefully the adjustment of informal roles taking their interrelationship
into account
Balance all informal roles in a team
Suggest (change request) changes in formal roles to adjust. Do not try reverse.
20:26 Role Owner Satisfaction
Following the assignment or reassignment of formal roles, performance evaluation

and adjustments targeted to optimised the results, even if the external indices of
performance decrease are missing the dissatisfaction of project team member may
result soon in major project problems, as the intrinsic motivation fails.
The motivators, growth needs, as presented in section 20:25 Formal to Informal
Role Adjustment, may lead to hilarious demands, exceeding the project
possibilities or reasoning. Therefore, a systematic approach as presented in
Fig. 14.7 helps to find balance.
Firstly, we verify if the person personal traits allow for higher satisfaction. In
case of e.g. permanently dissatisfied persons an attempt of a (possibly) minor
adaptation in tasks or remuneration will not bring the desired results so we rather
opt for a major change in a project role ownership.
If the personality cherishes hopes for better performance upon changes we
proceed to formal role adjustment decision and appropriate change motion (e.g.
more responsibility or task adaptation).
In case role adjustment is not necessary, but the personal needs focus on personal
development deficiency with the future performance increase potential, higher
motivation may be reached with suitable programme.
The techniques and tools listed below are specifically selected for project manage-
ment purposes. The vast instruments of human capital management, applied in a
permanent organisation HRM are beyond the scope of this book.
20:31 Target Personal Resource Capacity
Personal Resource Capacity

In the process of Organisation Management (OM) roles has been elaborated in
accordance to the tasks grouping and their resource capacity demand. The assumption
is made, that the role owner performs in accordance with certain standards. These
standards are determined by e.g. demanded education, practice, company best case
experience or experts evaluation (see Chap. 2, 07:00 Planning & Scheduling: P & S).
In hiring the role owner certain additional capacity has to be planned and
subsequently put into the evaluation criteria, due to the scheduled (e.g. holidays)
or accidental (family occurrences, sickness) absences.
Additional Resource Capacity Needed

So in case of e.g. 1,400 productive hours demanded in a project, about 1,800 h (full
time employment) shall be set in the required job description (personal resource
capacity).
In case the chosen role owner does not provide convincing abilities, demanded
by the project or there is a risk due to the approximate candidates evaluation or
conscious selection of inferior (because he is e.g. price worthy) candidate, another
corrective hours for job performance shall be added (e.g. 10 % of total hours for
learning-on-the-job). We land thus in the range of 2,000 h in the above example.
The decision between the maximum efficiency versus low cost learning-on-the-
job candidate shall be taken in accordance to the actual human resource market and
project sponsor or hosting company policy. Subsequently these total hours shall be
charged to the project or split between the project and e.g. company human resource
capital management fond.
It is not advisable to speculate about high candidates efficiency and economies
on the demanded hours. Project by definition are new and jobs can not be
Table 14.3 The example of absolute requirements weighting

Requirements criteria Very important Important Less important
1 Acquaintance with the area of job x
2 Experience in projects x
3 Creativeness x
4 Thinking in categories of economic profitability x
5 Readiness to cooperate x
6 Readiness to work overtime x
7 Ability to negotiate x
8 Ability to win the authority x
9 Ability of abstract thinking x
10 Organizational sense x
Table 14.4 The example of relative requirements weighting

Requirements criteria of 100 value
1 Acquaintance with the area of job 10
2 Experience in projects 8
3 Creativeness 3
4 Thinking in categories of economic profitability 18
5 Readiness to cooperate 12
6 Readiness to work overtime 2
7 Ability to negotiate 16
8 Ability to win the authority 14
9 Ability of abstract thinking 4
10 Organizational sense 13
determined in such a degree of accuracy, that any additional demand may be

excluded from the start on. So in case of better performing candidate this may be
a welcome back-up reserve or in best and up to authors own experience never
happening case contribution to project total costs reduction.
20:32 Complete Demanded Profile Definition
The abilities demanded to perform the formal role, preferred personal profiles and
preferred or open informal roles build together a multidimensional decision matrix.
To facilitate the decisions each singular preferred characteristics or demanded skill
shall be weighted.
Weighting Demanded Skills and Personal Characteristics

Suggested is the use of Metaplantechnik (Schnelle and Eberhard 1982; Meyer 2003;
also in Chap. 2, 07:00 Planning & Scheduling, section 07:30 Techniques and
Tools) to elaborate the weighting.
The weights may be set in an absolute (see Table 14.3) or relative (see
Table 14.4) way.
In case of absolute weights example profile of requirements for the project

manager, several items are set at the same level. In extreme case all will be set as
e.g. very important. This does not facilitate the weighting.
The recommendable is the relative weighting. In the above example we
allocate 100 points among the demanded abilities and job characteristics as
shown in Table 14.4.
20:33 Candidates Evaluation Techniques
Assessment of Knowledge and Experience

The assessment of knowledge and experience may be done in one of the four
following different ways:
(a) Review of previous achievements of the candidate, based on school certificates,
references, curriculum (CV), available results of his work. The critical point
here is the assessment of the competences of the persons issuing the references,
the objectivity of the information in the CV or the evaluation of the candidates
contribution towards visible results. This procedure may be applied if we have
good reasons to trust the data.
(b) Certification of the experience by the acknowledged certification bodies like
PMI, IPMA (through national societies), SAQ (for Swiss HERMES) for project
management. In all cases all levels of certification except the lowest one
(CAPM for PMI, D for IPMA, HSPTP for HERMES) are issued only to
professionals with proved track of records in project management. The
certificates testify also certain level of knowledge, acquired by the candidate.
Other professions dispose of similar experience based certification schemes.
(c) Assessment centre conducted by the hiring organization or by a third party on
behalf of the hiring one. This is the most reliable yet most expensive way to
evaluate ones experience. Therefore, it is usually applied to the jobs with major
impact (Seiler and Lent 2005).
(d) Evaluation of the current performance in a project of the present staff on the
base of direct personal interviews with the candidate or his superior, periodical
qualification review or customer feedback.
Analysis of Needs
Needs analysis is well supported by the personality profiles elaborated in this process.
Ambitious extrovert person will be more interested in personal development plan and
career opportunities, while family oriented person seeks rather children friendly
neighborhood. To certain degree hiring organization may anticipate some needs
and address them directly in published job offer. However, the actual needs of the
candidates has to be extracted upon concrete prosperous job negotiations.
Most obvious needs like remuneration are usually set in a direct personal talk
with candidate. Less obvious expectations and needs, yet relevant both according
do Maslow or Herzberg schemes, may be additionally extracted with the help of
questionnaires.
Table 14.5 The example of needs cost function

Needs cost function Coefficient Candidate demand
1 Yearly fixed salary 1.0 x.x
2 Yearly variable results depended reward 0.7 y.y
3 Demanded job related education 0.2 z.z
4 Support in family dislocation and assimilation 0.8 v.v
5 Fringe benefits (car, insurance) 0.4 w.w
6 Status office and furniture 0.3 u.u
7 Career opportunities 0.1 t.t
Needs (1.0 *x.x) (0.7*y.y) (0.2*z.z) (08*v.v) (04*w.w) (03*u.u) (01*t.t)
Table 14.6 The example of hypothetical evaluation

Requirements criteria of 100 value Candidate A Candidate B
Scale 0100 0.01.0 0.01.0
1 Acq. with the area of job 10 0.8 1.0
2 Experience in projects 8 0.8 0.4
3 Creativeness 3 0.5 0.7
4 Thinking in cat. of econom. pr. 18 0.9 0.4
5 Readiness to cooperate 12 0.6 0.9
6 Readiness to work overtime 2 0.5 0.9
7 Ability to negotiate 16 0.8 0.2
8 Ability to win the authority 14 1.0 0.5
9 Ability of abstract thinking 4 0.7 1.0
10 Organizational sense 13 1.0 0.5
Total score in this area 82.9 54.8
Finally, all needs may be summarized into certain cost function (see Table 14.5) of
e.g. total costs to the company over the project duration. Where not explicitly named,
hiring party makes some assumptions like in case of e.g. career opportunities.
Candidates Evaluation
In this step we summarize the evaluation of each candidate and measure it against
his needs cost function results.
The degree of fulfillment of each criterion we set between 0.0 (not available) and
1.0 (fullest). Direct comparison of two exemplary candidates is given in Table 14.6.
Hypothetical candidate A is an experienced professional, candidate B bright
clever school graduate.
The scores achieved in each area may be visualized with Kiviath graphs. In
reference to the L-Timer we evaluate candidates skills and abilities related to each
project management process. Outer shape (brighter) reflects administrative pro-
cesses capabilities, inner one the human factor capabilities. Considering that
perfect 12-corner figure for administrative processes and hexagon for human factor
processes reflects 100 % fulfillment of the composite criteria two candidates may
expose their profile as shown in Fig. 14.8.
20:40 Templates 289
Fig. 14.8 An example of graphical presentation of capabilities of two candidates
The above grade of fulfilment is to be matched against the needs cost function. It
is advisable to clearly separate: what project seeks (and candidate offers) from what
company has to deliver (candidate needs satisfaction). At the end it is not a simple
mathematical equation between both: the experienced person in charge of human
resources put a notion of perceived and not contained onto the final candidates
evaluation.
20:34 Internal Recruiting
Internal Recruiting
Frequently projects are built out of the people within the project sponsor organiza-
tion. Usually only rough approximate match between the project requirements and
candidates skills is done; needs are usually already absorbed. Yet, the awareness of
the deficiencies of the internal candidates helps to identify the necessary skills
development and to assess the risk potential.
20:40 Templates
In order to identify the skills and capabilities of each team member, full L-timer
scheme of all 18 process suitability is recommended. For demonstration purposes
simplified following template is hereafter presented in Table 14.7.
20:42 Project Results Documents
The optimal personal development plan foresees the trainings which ambiguously
fulfil the needs expectations of the team member and contribute towards reduction
Table 14.7 The example of assessment scheme

Assessment candidate A
2 Required Skills description and tables
The skills and personal traits required to fulfil the specific project role are listed here
3 Formal role requirements fulfilment
Table of demanded skills
Chosen assessment method (interview, certificates, assessment, case study)
Results for the candidate
Conclusions and suggestions
4 Personality traits evaluation
Most desired profile
Chosen assessment method (interview, questionnaire, assessment, case study)
5 Team suitability
6 Personal needs
7 Summary and final evaluation of a candidate
The overall evaluation of a candidate or team member is briefly summarized. Recommendations
are formulated
of possible gaps between the current team member skills and abilities and those,
which are needed to achieve the project goals. An example is given below in
Table 14.8.
20:50 Activities and Deliverables of HRM
Tasks
Identify core team which initiate the project
Perform general assessment of core team members
Let the team selected their roles
Secure the each team members motivation
20:50 Activities and Deliverables of HRM 291
Table 14.8 The example of assessment scheme

Personal development plan, team member A
2 Identified target development areas
Describes the actual assessment results of the team member indicating the areas of target growth
potential
3 Feasible trainings
Describes the suggested trainings in the sequence of their priorities:
Relevance to specific area and its priority
Goals of training and learning
Prerequisites, initial knowledge required
Contents of the training
Measures of the training results assessment
Training infrastructure (materials, rooms, IT, services, auxiliary measures)
4 Planning and organization
Setting particular sequence of trainings, deadlines as well as their mutual relations (who, when,
what, and where)
5 Resources and commitments
Financial resources
Non-financial resources needed to realize the trainings
Team member commitments to remunerate the expenditures of trainings
Financial plan
6 Evaluation of the carried out trainings
List of documents with the analysis of trainings and training results in order to improve their
quality
7 Enclosures
Results
Motivated core team with first roles assignment
Tasks
Specify particular formal roles in a project
Plan the demand for project team members
Set the profile of requirements concerning particular roles
Analyze abilities and traits of potential team members
Analyze the needs of potential team members
Assess the qualifications to perform the assigned roles in a project by the
potential team members
Assign the initial role owners to specific roles
Adjust core team members roles
Evaluate the deficiencies and personal development plans
Administer selected trainings (optionally)
Results
Roles fully specified (formal, informal, personality traits)
Demand for resources formulated
Roles in a project assigned to best feasible owners
Personal development plans formulated and agreed
Revised core team members roles and first roles modifications

Tasks
Carry out the roles and role owners changes
Carry out the individual performance evaluations
Anticipate and react to team member needs
Results
Revised and dynamically optimised role assignment
Personal needs addressed

Tasks
As in the implementation phase
Prepare the final team member evaluation and certificate
Results
Fully operational role ownership till the very end of the project
Final team member evaluation
Certificates of project participation issued to all team members.
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13 February 2013
22:00 Team Management: TM
15
Quick Look
What Is It?
Team Management (TM) welds together team members chosen in HRM towards
best possible efficiency of the whole team.
Who Does It?
It is primarily task of project manager to exercise the leaderships (L) and steer the
team towards optimal efficiency.
Working in a team, one likes, is the second, past the project goal, most motivating
factor; and motivation lead to tenfold performance. On the other side, people
underperform, when they take time to find their social position in team and this
is unavoidable. Their productivity is influenced by interpersonal relationships and
multicultural impact. So it is the question of productivity to care about in Team
Management.
What Are the Steps?
Verify and close pending process improvements and tasks.
If there is a new team member initiate the process of his fastest integration in team.
Watch if team performs start appropriate procedure, in case any improvement
potential emerges. Carefully observe the multicultural interrelations do not
hesitate to initiate clarification or adaptation of any rituals.
After verifying all roles check if Change Request or Knowledge Management shall
be addressed.
What Is the Work?
Team works efficiently if there are no major internal differences. Any new team
member starts the team positioning from the scratch so it takes time to settle.
And this shall be minimized. The higher is the team cohesion the better is its
performance. Yet only project goal oriented teams are efficient any hidden agenda
of highly coherent team is disastrous definitely, has to be avoided.

296 15 22:00 Team Management: TM
CM, HRM, L
22:00
Pending process
improvements
and tasks
Yes
New Team building
member in team? see 22:22
No
Yes Team performance

Unsatisfying team
performance?
see 22:23
No
Yes Team culture

Team culture
deficiencies? adjustments
see 22:24
No
Any Yes
change CM
necessary?
No
Yes
Lessons learned? KM
No
Fig. 15.1 Team management process

Organize and lead fast team building activities, support multicultural knowledge
and growth of mutual tolerance, take care about true focusing of the team on the
project goals.
Process
Firstly try to finalize all hanging issues, before you take on the new or changed role.
Initiate the team building process each time someone new join the team. Work hard
on team performance and multicultural aspects next. Suggest changes, store knowl-
edge and reenter the process periodically (Fig. 15.1).
22:20 Methods 297
22:10 The Goal of Team Management
The goal of the process of Team Management TM is to maximize the effectiveness

of a group measured according to the following criteria:
Team performance,
Satisfaction of team members,
Satisfaction of clients,
Improvement of a process,
Atmosphere of work in a group,
Team integration.
Clients satisfaction is measured in QM-Process, that of team members in HRM-
Process. Evaluation of both is done in BSC-Process all presented earlier in this
book.
22:20 Methods
Team Management viewed as team motivation and team performance issue is

treated in two ISO 21500:2012 processes (ISO 21500:2012 2012):
4.3.18. Develop project team
4.3.20. Manage project team
Both processes runs during the Implementation in parallel leading to the ambi-
guity on where the detection and where the handling of the issue is treated.
Third process:
4.3.15. Establish project team although has the term team in the name
concerns the resources acquisition and as such is included in the Process of
Human Resource Management here (see Chap. 14 20:00 Human Resource
Management: HRM).
The ISO-Standard does not foresee explicitly the processes of the changes in the
team, which impacts the team dynamics and an impact of cultural background of
team members on the overall mutual cooperation in team. These issues are system-
atically bound into the recursive Team Management process, presented in this
chapter.
22:21 Social Networks, Group and Team
Humans need social environment to function. The way how we move in our social
environment determines whether we are individuals linked by social networks,
working in group or joining the team.
TCI Theme Centered Interaction Model

Suitable vehicle of differentiation offers here TCI Theme Centered Interaction
Model (Cohn 1975/2009) (Fig. 15.2).
In this model focus of personal orientation is either on personal topics (I), on
interaction with others (We) or on common goal (It). The environment is taken
Fig. 15.2 TCI theme

centered interaction model
(Cohn 1975/2009) Focused on (common) Goal
It
I We
Focused on Focused on
himself interaction
Globe
Environment
under considerations in closest as well as in broad meaning into account, while

considering each of the perspectives. There is certain impact of thinking: while
focusing on I we influence our We thinking, We thinking leads to common
goal focusing (It) and goal oriented thinking influence back our egocentric
orientation.
This differentiation allows us to classify our social adherence.
Social Networks
Social networks are loosely set up interconnections, where individual primary
precedes with his I goals. We may act passively (being e.g. listed as project
managers in some local telephone book) or actively (clubbing, searching partner on
Internet social network like Facebook (www.facebook.com)). No common goal,
neither any common responsibility characterizes this status.
Groups
Individuals with a common base (social, national, ethnic) forms a group. Certain
direct interaction with each other for a longer period of time characterizes group
(Denisow 1999). Common interdependence forces to consider We aspect (e.g.
traveling together on public transportation). The resulting social group coherence
may vary from low (coincidental travelers) to very high (usually triggered by some
occurrence leading to the dawn of certain relevant common goal and in conse-
quence to team building!). Formal groups form structure, informal groups: visible
group culture. The last has usually high degree of coherence, which might be highly
powerful, both in supporting as well as prohibiting project management (Group
Thinking in Chap. 16, 00:00 Conflict Management: CFM).
Team
When the identification and focus on common goal become predominant in think-
ing of the individual, we land at It the distinguishing factor of a team. Goals has
to have all SMART-features (see Chap. 2, 07:00 Planning & Scheduling: P & S).
22:20 Methods 299
Table 15.1 Social relationships in TCI Model categorization

No. Characteristics Social network Group Team
1. Predominant I We It
2. Goals Individual uncorrelated Individual correlated Common
3. Roles None Coincidental Defined
4. Relationship None Coincidental Established
5. Activities Individual uncorrelated Passive awaiting Coordinated, focused
6. Responsibility One for own activities Individual in a group Common for c. goals
Performing Forming
(Focusing on goal achievement)
(Setting up of the relationships)
The team is able to commence works. The goal,
manner of conduct and mutual relationships The project team memebers get to know
are defined, while the roles and functions are each other, try to probe one another,
assigned. The work is carried out systematically. communicate, judge the others. The
There is a place for creativity development. The caustion and kindness is prevailing, the
possible disruption is noticed and the person with certain achivements is the
precautionary mesures are prepared. There is centre of attention (e.g. the project
the atmosphere of cooperation and task leader), the anticipation position is
dedication. assumed.
Norming Storming
(Designing the organization) (Getting into the position)
On the basis of the agreed goals the team In the foreground there is the goal
members set up the roles, their mutual explenation, but at the beginning the roles,
formal relationship, discuss the activites, place of classification and individual
techniques, functions in active interpersonal freedom of performance evoke more or less
relationship. The team creates the working disagreement. The attempt to promote one
plan and time schedule, which enable himself is in disagreement with the efforts to
orientation and control. The regulations, reach the compromise. It is tested how far
results and tasks are openly available. Team we can go what the reaction of the team
cohesion prevails. leader will be. The polarization around
interpersonal aspects and emotions
dominate.
Fig. 15.3 The phases of team integration
Team coherence, stipulated by common goal orientation is major contributor to the

team efficiency (section 22:24 Team Performance Improvement Procedure).
Further characteristics of a team are common tools and shared responsibility for
goal achievement, which usually result in dedicated, in best case complimentary
role ownership. This way personal goals (I) are impacted by the It.
Table 15.1 summarizes the characteristics of the mentioned social relationships.
22:22 Team Integration Phases
When the project team first time meets or the new team member join the crew, the
group dynamics process commences (Tuckman 1965).
The process starts with the Forming phase, in which team member get known
each other, get through the Storming phase, where social hierarchy is set until the
Norming assignment of the roles allows finally to perform in Performing phase
(see Fig. 15.3).
A decade later same author extended the cycle with Adjourning when team
member leaves the team, and the remaining team members have to rearrange
themselves, or when the whole team dissolves (Tuckman and Jensen 1977). Team
dissolves when project is finished or discontinued. In other case this leads to
immediate change in the OM Process, where the roles have to be reworked or
HRM Process, where new role owner is sought. The adjourning certainly
accompanies the persons who leave the team, so it is justified to consider it in
context of personal impact and emerging informal groups (typically alumni
associations, military units combatants). It is considered irrelevant in the project
team building process; therefore four phase model is further adopted.
22:23 Team Building Process
Forming Phase
Relatively smooth and yet crucial to further team development is the initial
Forming phase, triggered by team first set-up or new team member. The develop-
ment of the relationships is impacted primarily by the trust atmosphere enabling the
individual personality impact. Precondition of trust is mutual knowledge about each
other in a team. Here Johari Window is considered to be a suitable technique to
follow (section 22:31 Johari Window).
Storming Phase
In most cases it is impossible to clearly mark the end of the Forming phase and
begin of the Storming. We may judge only by some indices that the Storming is
arising when the first role and task assignments does not go smoothly (Fig. 15.4).
The Storming may take a long time if not accelerated by conscious and target
oriented moderation by project manager or the person in charge of the HRM. Only
when alpha-animal in team is set, and all others find their position in team social
hierarchy Storming may be considered as absolved.
When one or more team members, even without any personal change, mentally
did not reached the Norming phase, automatically the whole team falls back into the
Storming phase, too.
Norming Phase
The usually high coherence reached in Norming in most cases leads to changes: in
OM, in HRM, culture of conflict solutions CFM or Communication rules redefini-
tion. So it is reasonable and advisable to openly accept the teams drive to adapt the
22:20 Methods 301
Team buidling
procedure
No
New
Team member?
Yes
Initiate and get through

the Forming of a team
Team No
in Performing
phase?
Verify the status of
Yes Storming in a team
Storming No
completed?
Yes
Get through
the Norming phase
Yes
Changes
CM
necessary?
No
Secure stable
Performing phase
Team building
procedure
End
Fig. 15.4 Team building procedure in TM
OM structures and HRM assignments towards most effective, team deduced

organization.
Performing Phase
The faster the performing stage is reached, the higher is feasible team performance.
We recognize this phase in team development process by following indicies:
Recognizing Performing Phase

Team members communicate openly and directly
Any criticism is constructive and not personal
All team members accept themselves mutually
There are no major conflicts open
Trust atmosphere dominates
No evident hierarchy is seen in team decisions
Any obstacle is jointly approached and solved
Decisions are taken in team
Any success is a team success
Yet, even the best performing team subjects to various influences, having negative
impact on team spirit and if not anticipated and countered with appropriate
measures may drop team back to the storming phase:
Negative Impact Potential in Performing Phase

Rejection of someones else idea because it was Not invented here
Refusing of external, in particular relevant negative, healthy criticism
Gate keeper Effect: Only one member of the team communicates with the
external world, also in situations when it is not necessary, reducing the team
performance
The isolation of the whole team from the external world and the application of
information filter with reference to certain goals and techniques.
Unsatisfied team members becoming Mr No in team.
Excluding individuals from the team and mobbing (Denisow 1999).
22:24 Team Performance Improvement Procedure
Team Performance Indicators

We build teams because teams are more efficient than the individuals; they are more
flexible and use the more efficiently the individual capabilities. TEAM means
Together Everyone Achieves More (author unknown).
Performance evaluation firstly is done in Earned Value Management. The
overall performance, which includes non-monetary criteria, is evaluated in Bal-
anced Scorecard. The individual performance is evaluated in HRM process. Every-
where we collect the results and not necessary can identify the reasons of
performance deviation.
In Team Management we evaluate the performance and performance potential
on the basis of the behavioral indicators.
Effective Teams:
Know their strengths and deploy them effectively
Assign the role and tasks along the team members strengths
Strong leader keep all in team highly motivated
Team members trust each other
22:20 Methods 303
Team performance
Evaluate the indices

of team performance
Yes Team
Higher Performance
Potential?
No
No Team
under performing?
Yes
No Team
in Performance Team Cohesion
Phase? Evaluation
Yes
Team Yes Yes

Changes
Cohesion CM
necessary?
Problem?
No No
Team building No
problem?
Yes
Indidual Yes
Team Building Performance HRM
See 22:23 problem?
No
Reexemine the team

performance indices
Team performance
End
Fig. 15.5 Team performance improvement procedure in TM
All are committed to common goal and pursue it with maximal engagement
Communicate internally and externally openly and efficiently
Collaboratively solve the problems
Have good internal and external supports
TeamPerformance
Forming Storming Norming Performing Time
Fig. 15.6 Team performance in various team building phases (Tuckman and Jensen 1977)
Ineffective Teams show deficiency in one or more of the above indicators and
additionally:
Does not identify and assign the tasks along the capabilities of project team
members
Several team members try to execute same task, difficult tasks remain untackled
There is no clear tasks assignment
One person (not necessary project manager) usurps the authority over the team,
while others just float
The results of the evaluation initiate sequence of operations shown in Fig. 15.5
below:
The team performance indicators may point at higher performance potential. In
this case we shall reexamine the performance indices and either increase the
productivity criteria or for whatever reason reserve this detected potential for
possible short notice emergency deployments.
Similar situation takes place when team performs as expected. The demand fot
indices reexamination is not that strong in this case, but still useful.
Team Efficiency in Team Development Phases

Team efficiency (Tuckman and Jensen 1977) varies in various team building stages
(see Fig. 15.6). Therefore we have to apply different levels of expected perfor-
mance adjusted to the current phase in which team performs.
Impact of Cohesion on Team Efficiency

If team in Performance phase does not perform, the reason may lay in the team
cohesion, which Lakhanpal (Lakhanpal 1993) after having analyzed 31 projects
consider to be the main reason for the team performance variations.
If primary cohesion factor of team members is social adherence, the project goal
drops to the second plan and team becomes a group with attributes described above
and negative impact on team performance.
The goal induced cohesion has a decisive impact.
22:20 Methods 305
TeamPerformance
High
Team and Project Goals congruent
Team and Project Goals not congruent
Low
Low High Team Cohesion
Fig. 15.7 Impact of cohesion on productivity for congruent and deviating goals
The goals of team may be those, common goals of the project, but they may vary
up to the completely deviating one like social needs of this group members. Often
informal groups with negative impact on the project are built under these
circumstances. An impact of not congruent goals may be adverse: high team
cohesion leads at deviating goals to productivity loses instead of increase, although
at lower pace as compared with impact of cohesion on productivity, when the goals
are congruent (see Fig. 15.7).
Virtual Teams Cohesion

Performance is impacted by direct lost in the individual productivity and by the
secondary effects of resistance of such a team to leader changes and what may be
called Groupthink effect: part of team formulates and follows informal goals up
the point of their full contra productivity (Janis 1982). Particularly endangered are
here virtual teams, which works in distributed environments,
Upon assumption of congruent goals it is reasonable to work on highest possible
cohesion in team by:
Defining a homogenous organizational structure
Being conservative and restrictive on organizational structure changes unless
otherwise justified
Promoting frequent interaction of team members
Continuously securing that the team goals are present
Letting team to celebrate the successes on the way.
22:25 Team Culture Adjustments
The easiness of today migration, international projects, multinational team

members introduce today a new factor, influencing the team performance: cultural
differences. Shaking hands in Europe versus bowing in Asia, German time preci-
sion versus South European about then the examples are numerous.
Culture is a system of common standards, beliefs, value systems and customs,
which bind together certain people groups and create a feeling of unique identity.
Hofstede (Hofstede and Hofstede 2005) calls it mind programming. And projects
are where common goals meet different minds.
The package contained in different minds determines ones perception of the
situation and environment and his actions, what in turn affects the team perfor-
mance. Both, the team development phases as well as team cohesions are tangled.
Individual performance is otherwise evaluated in HRM Process. The individual
cultural backgrounds of a team member influence practically his participation in
each of the L-Timer processes. To gain the optimal team performance one has to
open himself to other way of thinking and accept maybe sometimes un-
understandable reactions.
Belgian CU-Factor (CU-Factor 2013) company developed a taxonomy to evalu-
ate cultural impact on projects, based on the analysis of cultural impacts in all
European countries.
The four differentiating criteria are:
Cultural influences (Working hours, dress code, dress relevance, punctuality,
lunch/dinner habits, gifts)
Communication (language, style and way of expressions, handshake, general
perception)
Organizational structures (organization, orientation of management on goals or
people, role of networks, flexibility of adaptations)
Cooperation style (trust development speed, base and way of decision making,
role of rules, way the partner are treated, way of dealing with uncertainty)
The cultural influences and communication habits may be mastered in a short
time, once we wake up our awareness and put some attention to these issues. It shall
be noticed, that language is not only grammar and style, but also idioms and
understanding of the whole phrases. Tomorrow for Spaniard does not necessary
means, that it will be just next day.
Two dimensions of cultural traits define ones approach to the organizational
structures. Hofstede (Hofstede and Hofstede 2005) defines them as:
Power distance and
Individualism (versus Collectivism)
Power distance cultural traits determine our reactions to collaborative tasks and
project manager leading. A team colleague from Thailand will find it difficult to
work in changing teams he prefers to have a clear hierarchy decision on that.
Swiss will not hesitate to demand highest competence from the project manager and
will openly disavow his decisions. Generally the larger the distance between the
social classes in a culture is, the more authoritarian and hierarchical decision taking
is expected.
The second dimension defines the value system and responsibility. Western
cultures, American being best example, place some value on personal responsibility
Known to themselves Not known to themselves
A B
Known to Area of open activity
Area of unconscious activity
others (public person)
Not known C D
to others Area of avoidance and Area of unknown activity
hidding(private person)
Fig. 15.8 Joharis window
and personal gains. This against the controlled or free adopted preference for team
orientation in action and in responsibility: to certain degree an Italian and Asian
virtue.
Morris and Peng conclude that the collectively oriented Chinese have greater
problem-solving utility (Morris and Peng 1994). So depending on the cultural trait
we may well place an individual in collaborative environment, we may or we have
to allocate a bunch of tasks to the whole team from India.
Generally: to keep higher efficiency to your team learn the cultural heritage of all
team members and apply the relativity of culture in unbiased way. Choose right way
for each person than the team will perform, too.
22:31 Johari Window
Johari Window name comes from its inventors Joseph Luft and Harry Ingham
(Luft and Ingham 1955). It defines the area of activities known to us and to others
resulting in the four combinations shown in Fig. 15.8.
Inventors prepared also a questionnaire of 56 adjectives, of which up to six shall
be chosen to describe ones own personality. Closer analysis shows relation to MBTI
presented in Chap. 14 earlier there. Johari window is deployed to speed-up the
Forming phase of team development process. The goal of groups development is
the increase of area A, where we and the others know what we do and why we act
this way, and to reduce the areas B and C. In the frame of group development, there
are only few possibilities of the reduction of area D. The development should be
actively supported by the project manager (see Fig. 15.9).
A
B B
A
C D D
C
Fig. 15.9 Joharis window at the beginning (left) and after (right)
22:32 Team Integration Measures
Observation
Observation of team members suits well for the purpose of gathering information
concerning the informal roles assumption, behavior of particular project team
members or their potential for the integration in their actual or future teams.
However, it is conditioned by significant social competence and experience of the
observer. Since during the observation it is only possible to have a look at the events
from outside, it is advisable to verify the results with some third persons from
inside or outside the team. An indirect verification of our opinion might add
objectivity to this verification.
Kick-off Meeting
Good starting point to obtain some knowledge each about each is the project initial
meeting: causally called Kick-off meeting. When all or few prospective team
members meet for the first time the Forming phase is initiated. It is useful to deploy
the Johari Window Technique, the Metaplan for personal presentations, informal
meetings for testing own cultural traits and work preferences. Paired with project
Initiation Phase (see Chap. 2, 7:00 Planning & Scheduling: P &S) perfect motiva-
tion to strive for the common project goals achievement may be set.
Based on the knowledge about the informal roles in team, we should plan and
carry out common workshops, trainings and meetings. The goal of this activity is to
enable team integration, through direct contacts in the team, which consequently
leads to the realization of the processes incorporated in the phases of team integra-
tion Forming, Storming, Norming and Performing. Depending on a phase and the
present works of the team, different forms of common activity can be in the
limelight.
Workshops
During workshops, in the merits we work for the realization of the set project goals.
The team integration is supported here first of all by professional interaction
between particular team members and is performed rather unconsciously. If the
team is at an early stage of its development, then the informal roles have not been
assumed by the participants yet. The participants of the workshops in certain way
go for it by using certain words, performing certain activities, etc. However, at a
later phase of team development the informal roles are already assumed and they
may exert even strong influence on the distribution and assignment of formal roles
what actually in most cases is advantageous to the project.
Trainings
In case of trainings the most important thing is to equip the project team members in
the abilities or knowledge necessary for the preparation of future tasks connected
with the project. On the one hand it allows to go through the processes of team
integration in an unconscious way. However, on the other hand, especially training
can contribute to a conscious focus on different elements of team integration and
this way to enhance consciously the understanding of the processes of team
integration. This way, the earlier unconscious experience of the processes of team
integration becomes the subject of conscious interaction between particular project
team members. Owing to this, it is possible to improve not only the acquired
knowledge but also mutual understanding.
Off-the-Job Meetings
The meetings of the project team can be organized regardless of the merits sphere.
The partners meet more or less voluntary in their leisure time, in order to run
together sport or cultural activity etc. This activity itself is not particularly impor-
tant as long as it can be carried out by each member and is at least a little similar to
the interests of particular partners. However, for the further development of team
integration, a minimum interaction is necessary while performing those activities. If
the team is at its later stage of integration, then in case of need it is possible to invite
to the meetings also people close to the partners.
Rules of Interaction in a Team

Especially in the preliminary stages of the process of team integration it is profitable
to work out together with the team the so called rules of integration in a team for the
need of workshops etc. The rules are then written down on flipcharts and are hang
up during meetings in a noticeable place. This way everyone always keeps it in their
mind. The term rules is understood as all the issues well known to everyone,
nevertheless it is worth to summarize it shortly. The rules among others include
e.g. the basic rules of conversation, as e.g. the ability to allow one another to express
their opinion, the rules of expressing criticism towards the subject matter and not
the person involved or not revealing personal issues outside the team. If any of the
rules is violated by anyone, the group notifies the person about the fact. This way it
is possible to evoke the feeling of justice, openness and terseness bringing real
effects (see Fig. 15.10).
Integration Events
Originally conceived for military trainings and buddy-system development camps
like that of Ranger School, gradually they migrated towards less hard versions
for top management and today are available for each, even financially less
Fig. 15.10 Illustration of partnering charter for team integration
potent teams. Survival camps, paint-ball camps, thorns, peak climbing are good
examples there.
Less demanding are joint games and team exercises within more or less usual
environments: company, nearby restaurant, football field round the corner. Excel-
lent source offers Gellert (Gellert and Nowak 2010).
Other sort of common integration events are occurrences, which go beyond the
usual daily life of team members like joint participation in a concert of a world star,
championship match gala dinner and so on.
22:40 Templates
The Forming phase may be supported by the following Check-list, elaborated on

the base of Gellert (Gellert and Nowak 2010) (Table 15.2):
22:40 Templates 311
Table 15.2 Checklist for the Forming phase

No Checklist for the forming phase Status?
1 Expectations of the team members met?
1.1. What will happen now?
1.2. Who are the others?
1.3. Where is my place?
1.4. What will be my task?
1.5. Who is the project manager and how will he manage?
1.6. How do the general working conditions look like?
1.7. What are the rules here?
1.8. Will my expectations be met?
1.9. What others expect?
2 Project managers tasks
2.1. Deliver relevant informations about the project
2.2. Secure clear structure (general, time, treated items)
2.3. Explain the origins and goals of common project
2.4. Draw the competences needed in a project team
2.5. Care about a friendly atmosphere
2.6. Provide the necessary space for personal distance needs
2.7. Approach with respect the primary resistance
2.8. Secure the situation against the devaluation of the actions
2.9. Express your confidence in capabilities and competences of team
3 Feasible team activities
3.1. Moderated contact between small groups, pairs
3.2. Activity developing we feeling in the team
3.3. Activities related to the project subject
3.4. Possibility to express fairs, needs and expectations with no need to justify
3.5. Leaving the team members to decide the level of their openness
3.6. Getting closer look or feeling who is the project manager and his style
3.7. Enable in team desire to play, motivation and trust
4 Possible obstacles
4.1. Team members go on distance and activate defense mechanisms
4.2. Few team members dominate and discourage the others
4.3. Energy is spent on self-defense instead of on team results
4.4. Spreading atmosphere of passivity and symbiotic expectations
Final result: Project Charta reached?
Good estimation of the performance potential in the team is an exercise of Francis

and Young, quoted in Gellert (Gellert and Nowak 2010) (Table 15.3)
Table 15.3 Example

Team for sale
1 Description of the situation
Team is assumed as being a department of large company in possibly related business area. The
times are hard for the company. The department manager had a day before a meeting with his
superior, who informed him, that company is in critical situation and its existence is in question.
Under these circumstances Company management sees only two solutions for the department of
the team:
1. Department will be closed and the tasks will be outsourced to external companies
2. The services of the department will be offered on a free market and company covers only
50 % of the department costs.
Superior is aware about the difficult market situation and strong competition, yet consider the
chances for the department to survive as profit centre on a free market as high. He let the
department to hire or purchase on a market also additional Know-how if it will be necessary,
however at won cost of the department
Department Manager and team has 6 months to elaborate the convincing business plan and start of
the profit centre
2 Tasks
Team as a whole or in small groups elaborate the following aspects:
Analysis of the capabilities and know-how which might be offered on a free market
Evaluation of the deficits in capabilities and know-how of the present team and decision if these
deficiencies can be acquired by team members or has to be purchase externally
With 6 months to go which steps shall be taken to strengthen the strong side of the team
Design the sales materials and product presentation for potential customers
Summarize the experiences of this exercise and verify which capabilities of the team now truly
can be strengthen, which capabilities are missing and what can be done about. Note down the
results
3 Team performance improvement potential
Collect the results of team own evaluation. Consider its impact and decide about further steps
22:50 Activites and Deliverables of Particular Project Phases
Tasks
Go through the Team for Sale (section 22:42 Documentation of the Project
Results above) exercise with your core team
Results
Core team capabilities and Know-how draft assessment
22:50 Activites and Deliverables of Particular Project Phases 313
Tasks
Estimate by indicators in which team building process phase your team
currently is
Identify the cultural traits differences in the team
Initiate activities to accelerate the team building process
Decide at which phase to team building are at the end of the planning phase.
Results
Team building phase identified
Team members aware about their mutual cultural back-ground
Team building accelerated
Project Charta drafted and signed by team members
Tasks
Care about the proper team building phase initiation upon each change in people
in the team
Identify, when the team goes back to the storming work to get the cycle as fast
as possible through
Evaluate team performance indicators and take suitable actions
Evaluate the degree of cohesion in a team
Go through the Team for Sale (section 22:42 Documentation of the Project
Results) exercise with your whole team occasionally
Results
Team building process kept alive and steered
Team performance factors evaluated and suitable actions taken
Team cohesion with positive impact on the project reached
Team members benefits from mutual cultural differences and can deploy opti-
mally each individual.
Tasks
As in the Implementation Phase and beside
Prepare Team for the Adjourning Phase
Results
As in the Implementation Phase and beside
Alumni-relationship initiated
Final conclusions for Knowledge Management Repository elaborated
Bibliography
Cohn RC (1975/2009) Von der Psychoanalyse zur Themen zentrierten Interaktion: von der
Behandlung einzelner zur einer Padagogik fur alle, Klett-Cotta, Stuttgart
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view. Accessed 14 Feb 2011
Denisow K (1999) Soziale Strukturen, Gruppen und Team. In: Rationalisierungskuratorium der
Eschborn
Gellert M, Nowak C (2010) Teamarbeit-Teamentwicklung-Teamberatung. Ein Praxisbuch fur die
Arbeit in und mit Teams. Verlag Christa Limmer, Springer, Heilderberg
Hofstede G, Hofstede GJ (2005) Cultures and organisations, software of the mind. McGraw-Hill,
New York
Janis IL (1982) Groupthink, Psychological Studies of policy decisions and fiascos. Houghton
Mifflin Company, Boston
Lakhanpal B (1993) Understanding the factors influencing the performance of software develop-
ment groups: an exploratory group-level analyse. Inf Softw Technol 35(8):168173, USA
Luft J, Ingham H (1955) The Johari window, a graphic model of interpersonal awareness. In:
Proceedings of the western training laboratory in group development, UCLA, Los Angeles
Morris MW, Peng K (1994) Culture and cause: American and Chinese attributions for social and
physical events. J Personal Soc Psychol Vol. 67, No. 6, APA, New York
Tuckman BW (1965) Developmental sequence in small groups. Psychol Bull 63:384399, APA,
Washington
Tuckman BW, Jensen MAC (1977) Stages of small groups development revisited. Group Organ
Studies 2, Newbury Park, USA
00:00 Conflict Management: CFM
16
Quick Look
What Is It?
Project pressure, personalities, reorganisation often leads to conflicts in team.
Conflict Management (CFM) attempt to detect emerging conflicts as early as
possible, solve them and start preventive measures for the future.
Who Does It?
It is wise to evaluate team members personalities and choice best suited as prospec-
tive moderator of conflict solutions. Second option are external stake holders. The
last, and in crisis situations the only solution, are professional psychologists.
Conflicts bipolarize the project fate. They may revolutionize the procedures
(positive case) or (unfortunately most common case), they are contra productive.
Worst case team get checkmated crisis and complete paralyse spread around.
Being well prepared we can act timely and mitigate the effects.
What Are the Steps?
Verify and close pending process improvements and tasks. Check for conflict
symptoms, be open for hints. Approach meticulously each conflict. If the team is
in crisis call professional psychologist. Learn and set preventive measures for the
future. After verifying all roles check if Change Request or Knowledge Manage-
ment shall be addressed.
What Is the Work?
Conflict solution takes a lot of time and energy. Each single cause of conflict has to
be evaluated and agreed by both conflict parties. Than each solution the same
way. Lastly the choice of an acceptable solution for all parties and securing its
sustainability take time, too.
Choose the moderator, preferably from inside team with qualities making him
acceptable to conflict sides. He should talk first individually, than together with
each party. Each party shall evaluate the possible strategies and choose its position.

316 16 00:00 Conflict Management: CFM
Only cooperative approach both sides truly works in projects. Agreed solution has
to be set with check date. Upon reaching agreement change of atmosphere, pleasant
thoughts are mandatory to fix it.
Process
Firstly try to finalize all hanging issues, in particular preventive and detection
measures before you evaluate the situation in team. Initiate the conflict solution
process if necessary, crisis solution if team gets that far. Learn out if that and set the
new prevention or detection measures. Suggest changes, store knowledge and
reenter the process periodically (Fig. 16.1).
00:10 The Goal of Conflict Management
The goal of Conflict Management is as early as possible recognition of conflicts

and conflicts potential; proper reaction on the conflicts through the application of
proven methods and elaboration of preventive measures against their re-
appearance.
00:20 Methods
Although in the dozen of years of praxis of the author, conflicts always emerged in
project teams, ISO 21500:2012 does not foresees any special action or process
dedicated to handle this issue, leaving project manager virtually unprepared (ISO
21500:2012 2012). This process shall close this gap.
00:21 The Definition and Indices of a Conflict
Conflict takes place when the plan of actions of one person limits or significantly
hinders the plan of action of another person (Triebe and Wittstock 2003; Verma
1996).
Thus, the signs of a conflict are the following:
The presence of at least two parties of a conflict,
No possibility of agreement regarding the tendencies of actions,
No possibility of agreement regarding behavior.
The following, general symptoms can indicate a conflict in a team (Triebe and
Wittstock 2003; Antons 2011):
Lack of patience in mutual communication and presence,
Ideas are questioned before they are fully formulated,
00:20 Methods 317
QM, HRM, TM
00:00
Pending process
improvements
and tasks
Conflict Symptoms or
direct Report check
Yes
Conflict Conflict Solving
in Team? Procedure see 00:25
No
Yes Crisis Treatment

Crisis in Team? procedure
see 00:26
No
Define and set conflict

prevention measures
Any Yes
change CM
necessary?
No
Yes
Lessons learned? KM
No
Fig. 16.1 Conflict management process
Team members are not able to reach compromise concerning plans and
proposals,
Argumentation is very vivid and full of emotions,
There are parties of a conflict, nobody is open for com-promise,
Negative utterances concerning other people and their achievements,
No agreement concerning the common point of view,
Members accuse each other of the lack of understanding,
Others opinion is misapprehended,
No trust in the team.
Table 16.1 Potential factors of conflicts in an organization

Source Examples
Identity Social role of an organization, mission, sense and goal, pattern, basic
values, image
Strategy Long term strategy, the policy of a company, key note, plans, priorities
Structure The principles of structure, hierarchy in the process of management,
administrative procedures, posts of the line structure and the
management positions, central posts and the decentralized ones
People, groups, Interpersonal, Knowledge and abilities of the team, personalities,
atmosphere attitude, relations, style of management, informal group creation, roles,
power and conflicts, atmosphere in the work place and project team
Particular functions, Tasks, competences and responsibility, the contents of tasks, groups and
bodies project teams, coordination
Processes, their Processes and schedules of tasks realization, informative, decisive,
conduct planning and steering processes
Resources Human resources (workforce), budget
Physical measures Technical resources, Instruments, a phone, a computer, machines,
material, furniture, rooms, premises, financial measures
00:22 Potential Sources of Conflicts
Table 16.1 combines the conflicts potential in the organizations as seen by Triebe
and Wittstock (Triebe and Wittstock 2003), with the project specific (bolded in
Table) sources as seen by Thanhain with Wilemon and Posner quoted by Verma
(Verma 1996) and Gray and Larson (Gray and Larson 2007):
Even if the authors disagree on the ranking of the sources, bottom line is that the
bolded sources are most common. Most recent (2007) Gray and Larson indicated
the differences in the project phases as shown in Fig. 16.2.
We observe that most or second most conflicts occur around the schedules. This
confirm also Spiess and Felding in (Spiess and Felding 2008). So, good planning
and team involvement in planning might be a good conflict prevention policy in a
project.
Classification of conflict sources along the involved parties allows project
manager, team members and moderator to position themselves. We distinguish:
Intrapersonal conflict one has with himself (torn by opposite personal goals) and
attempt to carry it out on a team forum,
Interpersonal conflict between the individuals in team
Intra-team conflict, when grouping creates opposite camps within project team
and
Inter-team conflict between project team and e.g. rivaling team from the com-
pany or competitor.
We mostly have to deal with interpersonal conflicts. Intra-team conflicts are
complex and end up in most cases in crisis (Chap. 16, 00:00 Conflict Management:
CFM, section 00:26 Management of Crisis Situation).
Inter-team conflicts are subtle they may be handled for certain time, but sooner
or later the negative impact over helm the initial rivalry benefits and demand again
00:20 Methods 319
Conflict
intensity
Schedules
3 Process
Workforce
Technical
Procedures
2
Cost
Interpersonal
1
Definition Planning Execution Delivery Project

(Initialisation) (Realisation) (Closing) Life Cycle
Fig. 16.2 Conflict sources according to Gray and Larson (Gray and Larson 2007)
complex external solution approach. Intrapersonal conflicts may be delegated to

HRM.
Glasl (Glasl 2004) developed a conflict model based on three levels of conflict
dynamics:
Level 1: win-win. Both parties still can win
Level 2: win-lost. Clearly there is a winner, and
Level 3: lost-lost. No one really can win anymore.
If unaddressed, conflicts evolve from level 1 to level 3. Level 3 we can view as a
crisis. Level 1 is the best option to reach the results in conflict solving. At level
2 each partner tries to convince the other one about his arguments, sure to be in his
own rights, leaves already limited options to find a common solution.
We may conclude that in view of Glasl dynamics only Level 1 conflicts may be
solved by team themselves.
00:23 Conflict Impact on Performance
Verma (Verma 1996) distinguishes relatively unambiguously the three epochal

views on conflict impact on organizational team performance. He consider it
Classical view, when we see the conflict negative impact on performance as a
monotonous deceasing function, which was up to him carried until 1940s
Behavioral view, given up in the 1970s, which admits conflict both negative
and positive impact, but suggest rather to minimize the conflicts intensity in a
team and
Interactionist view where Verma sees relatively long time of increased perfor-
mance as the level of conflict increase. Certainly the creativity in this phase
improves and parties clarify their positions.
Level of Organisational
Performance
High Competition Phase

(e.g. Storming)
Equilibrium
Phase
War Phase
Low
Low High Level
of Conflict
Fig. 16.3 Conflict impact on team organizational performance
The strict time allocation by Verma seems to be purpose derived. The

Interactionist view of positive impact of conflict was already treated by Mary
Parker Follet, who advocate to put the conflict to work in her second lecture on the
psychological foundations of business management, to the Bureau of Personnel
Administration conference group, in New York, in 1925 (Graham 1995/2003)
Gellert and Nowak (Gellert and Nowak 2010) contradict Verma also and
approach the conflicts from the behavioral point of view.
In authors opinion conflicts may have positive impact but for the relatively low
intensity conflicts and within a short period of time. It is called Competition
Phase on Fig. 16.3. Very soon a stage of Equilibrium begins where we can
keep team delivering, but for a limited time period only. This may be the case when
e.g. we are in the last project phase, and it is just the questions of days until project
get finished and team dissolved.
In reality soon the performance degrading War Phase starts and if not counter
measured deteriorates the performance up the final crisis in a project. The
relationships brake, team is less willing to enter any collaborative ventures, com-
munication brakes, groupthink, static views and violence develop.
Consequently author contradicts Verma and lends credibility to Behavioral
approach of Gellert as still holding true and rather opts for conflict overcome
than exercise with Competition Phase.
00:24 Conflict Solution Approaches
Conflicts emerge on the base of personal values, beliefs, interests and soon become
emotional. Dealing with a conflict we have first to dissolve the emotional issue
than address the interest and at the very end the beliefs and values.
00:20 Methods 321
Confrontation strategy
Adversary
Cooperation strategy
Cooperation strategy Confrontation strategy
Project manager
Fig. 16.4 The strategy of confrontation and cooperation
Two aspects define our approach:

Strategies followed by the parties during the conflict phases and in the initial
phase of solution approach
Conflict solution style chosen by the parties.
It is worthy to consider project manager as one of the parties, what actually often
happens.
Whereas, in the common practice of project management the conscious measur-
able strategies are only those of the people taking decisions, and at best also
intuitive external impact was taken into consideration e.g. that of sponsors or
stake-holders, here the successful project management is considered as such,
which integrates to the same extend the strategies of a project manager as well as
his adversaries, like e.g. of team member or project supervisor.
Project manager can choose one of the following strategies:
Cooperation strategy or,
Confrontation strategy.
This holds true also for his adversaries. They may also select between:
The strategy of cooperation or
The strategy of confrontation
The resulting combination of all these strategies is illustrated in Fig. 16.4. In the
example possible results for a person taking decision are marked with smileys in
light colour and those of an adversary in dark colour. Possible gains are expressed in
number of smileys one can reach, if he choose the specific strategy and the
opponent another one. Thus, e.g. when project manager adopt cooperation strategy
and his adversary goes on confrontation, project manager wins two smileys, his
adversary four, together the total number of smileys is six. As it is maximum in this
play, it suggests that such strategies of both sides lead to the best results. Unfortu-
nately it is illusory: project manager has to achieve team goals and such a case sets
precedence for future collaboration: always compromising project manager will
deliver inferior results.
The only reasonable and successful strategy in project management is both sides
cooperation strategy. Projects by nature are innovative and in part unpredictable. So
a looser will sooner or later have a chance to revenge and certainly he will
escalate. By adopting both sides cooperation strategies neither is giving up and both
share the feeling of a success.
cooperative
Accomodation Cooperation
Mutual relationship is more important; Discuss the differences;
Yield; Openly present your own point of view;
Submit; Look for the alternatives together;
Take into consideration the opinion of others
Agree; WIN-WIN situation(no loosers);

Lower requirements Optimum solution
Compromise
To negotiate means:
Everyone yields in something: argue,
threaten, fight, make concessions;
The second solution the best after the
optimum one (cooperation)
Avoidance Exerting power

Ignore the conflict; Use your authority;
Transfer the problem; Manipulate the information;
Hope for bureaucratic solution; Enter a coalition;
Keep information in secret; Fight for power;
Withdrawal; Create a fait compli;
Lowering requirements Defame the opponents;
Exclude the participation of opponents
uncooperative
weak strong
Forcing through ones own opinion
Fig. 16.5 Types of conflicts solutions (Triebe and Wittstock 2003)
This leads us directly to the choice of style, which we intend to follow in conflict
solution as shown in Fig. 16.5. (Triebe and Wittstock 2003)
The avoidance is useful, when the matter is of lesser importance to us, trivial and
we intend to calm the situation. However, it is temporarily limited (Equilibrium
Phase).
If the things become unavoidable we can proceed to accommodation or power
exertion.
Accommodation is useful, when we acknowledge, that actually we have weak
arguments, to push our intentions through, when the things are less important to us,
than to our adversary, when we want to preserve and further develop good team
spirit, harmony and possibility of self learning.
Power exertion is a must, if we are under enormous time pressure to make
decisions of great relevance, when we have to make unpopular decisions, like
budget cuts or towards non performing persons.
We can compromise (style, not strategy!), when the things are important, but
both sides are strongly emotionally engaged in completely incompatible goals, we
are under time pressure and the thing is not worthy an effort. It is a good intermedi-
ary style before entering the exerting power or collaboration style.
Finally, with a cooperation strategy in mind, the collaboration style offers the
best sustainable results. The equally important goals of both parties are integrated,
both parties perceive the result as their own win.
00:20 Methods 323
Conflict Solving
Procedure
Prepare the rules
Prepare both parties for

CoCo conflict solving
Yes One of
parties not
interested?
No
Elaborate detailed
Conflict reasons
Damage control conflict reasons
diagnostics procedure
diagnostics
Elaborate and choose Best solution choice

best solution procedure
Agree
and Inform others
about consequences
Set the control

time and place
Relief the atmosphere
Conflict Solving
Procedure End
Fig. 16.6 Conflict solving procedure
00:25 Conflict Solving Procedure
Conflict solving is never a fast track procedure. It is an intensive, exhaustive

multiple steps process, which takes hours and days (Fig. 16.6). The procedure her
follows (Triebe and Wittstock 2003).
Each of the conflict dimensions demands a solution (Spiess and Felding 2008) as
shown in Table 16.2:
Table 16.2 Conflict dimensions and attained goals

No. Dimension Content Approach Goal
1 Instrumental Tangible issues like methods, Problem solving (see Solution
procedures and structures 12:20 PBM)
2 Interest Allocation of resources like money, Negotiation Agreement
time, labour and space
3 Value Political, religious, moral values Dialogue Mutual
understanding
4 Personal Identity, self esteem, loyalty, rejection Dialogue Mutual
understanding
We conclude, that while the conflicts in the first dimension might be diverged to
Problem Management, Dimension 2 but in particular 3 and 4 are subject of CFM.
1. Rules and Parties Preparation
Firstly we have to choose the person, which will moderate the conflicts. If
already set during the HRM or TM process it may easy the tensions. If project
manager is part of the conflict he can not be the moderating person. Chosen
moderator prepares the rules of conflict solving for all involved. He may choose
techniques given further in this Chapter (section 00:31 Conflict Prevention
Techniques). Once ready, he contacts both parties and let them separately to
describe the situation, earlier attempts to solve and express their expectations
regarding the future. Each party shall be reflected to abandon the following
positions (Lee 2006):
Mind reading: guessing about someone else motivation, agenda or intension as
the truth e.g. I know what he wants he will never get it as long as I am here.
Fortune telling: prefabricated prediction about the future e.g. This will be
disastrous for all if he get his way
Indulgence in self-righteous outrage: indignation based on assumptions and
guessing, e.g. How can he depreciate my 10 years work just by doing that?!
Both parties shall be motivated to see an advantage in common conflict solving
(Level 1 Win-Win) and both shall attempt CoCo: Collaborative Compromise
solution.
In case one of the parties tends to follow an alternative strategy or alternative
style, damage control substitutes the conflict diagnostic and solution choice. The
situation of level 2: Win-Lose occurs. The conflict in this case is just postponed,
power-played or lead to crisis.
2. Diagnostics of conflict reasons
Now under provision of collaborative cooperative approach of both parties they
are encouraged to express their assessment of the situation and reasons of the
conflict in a common meeting (see Fig. 16.7). Presence of the moderator secures,
that parties present the same views, which were presented in individual contacts
with the moderator. If some items have to split (e.g. someone does not like to work
in an office and that includes working place, air conditioning and other persons)
each of them has to be separately treated. Same happens with the joint description
00:20 Methods 325
Fig. 16.7 Conflict reasons

Conflict reasons
diagnostic procedure
Jointly expressed views

of each party
Yes
Split in components
necessary?
Define and separate
No
individual components
No Joint
detailed description
possible?
Obtain further
Yes
informations
Elaborated
Complete Diagnosis
of the situation
Both
No
parties agree on
diagnostics?
Conflict reasons
End
of each singular conflict reason. If finally a complete picture is reached and agreed
by both parties the diagnostics of conflict reasons is completed.
3. Preparation of solutions
The solutions elaboration begins with first draft of possible solutions and the
ways of their implementation. If there is not sufficient information to evaluate
different ways, loop ha to be repeated until clear comparison is possible. Subse-
quently the final solution is chosen and evaluated if all sides acceptable. The
procedure is repeated so long until the agreement is reached which may take
time (see Fig. 16.8).
4. Fixing the stability of the solution
The solution and the way to reach it is one side the consequences, in most cases
behavioral for the involved conflict parties the other side. So all consequences
shall be carefully evaluated with both parties and only when the control date and
place are set, the consciousness about the consequences of the reached agreement
truly seeds in the minds of all involved.
The whole process as presented in this chapter may take a lot of time and
certainly is exhaustive to all involved. The mutual acceptance at the end is on the
verge of tolerance and the results are very fragile. Therefore, a change in a subject
Fig. 16.8 Best solutions

Best solutions choice
choice procedure procedure
Draft
of possible solutions
Draft of possible ways

to reach the solutions
Evaluation
No
of alternatives
possible?
Yes
Elaboration
Obtain further
of all sides acceptable
informations
final solution
No Final
solutions reachable and
matches project?
Yes
Both
No
parties agree on
diagnostics?
Yes
Best solutions choice
procedure
End
to relieve the atmosphere is most important factor to fix the reached results.
Moderator shall inform himself about the hobbies of the parties, current interests
or personal pleasant occurrences and change the subject towards these themes
(Fleischer 1990; Cadle and Yeates 2008).
00:26 Management of Crisis Situation
Crisis situations are conflicts which deepen the feeling of hopelessness (see
Fig. 16.9). Unsolved conflicts can grow to the state of crisis and paralyze the
whole team (Triebe and Wittstock 2003).
Symptoms of Crisis Situation

We can recognize a crisis in a team by one or more of the following symptoms:
Blockade of improvements (being attached to strict hierarchy, inefficient roles,
procedures and peoples),
00:20 Methods 327
Fig. 16.9 Crisis treatment

Crisis treatment
procedure
procedure
Analyse the situation

for symptoms of crisis
Choice of external
crisis manager
Elaboration of change
proposals and their
impacts evaluation
Agree with project

sponsors /clients about
change proposals
Crisis treatment
procedure
End
Taboo topics,
Too bureaucratic regulations aiming at the avoidance of conflicts,
The team members who express their dissatisfaction are silenced.
The solution is not any more feasible unaided team has to search an external
crisis manager.
A change in project team is inevitable. The alternatives have to be evaluated and
agreed with those, who finance the project: sponsors or clients, before they are
passed further.
00:27 Conflicts Prevention
How to Prevent Conflicts

Best conflict solution and crises avoidance is not to let the situation develop that far.
Unfortunately generally we can pre-vent the reoccurrence of conflict only after it
already happened. Case studies like those of Spiess and Fielding (Spiess and
Felding 2008) help to benefit from someone else experience. Bracken G. et al.
see partnering as a main method to prevent the conflict emergence. As projects
goals span team interests there is a good chance, that focusing on mutual interests
binding the team members (section 22:20 Methods) we effectively contribute
towards conflicts prevention (Bracken et al. 1998).
Considering, that plans and schedules are the main source of conflicts in any
project phase not surprisingly Spiess and Felding conclude, that well elaborated
plan and schedules are a good preventive measure (Spiess and Felding 2008).
Glasl and Ballreich approaches this systematically, by focusing on activities in

team development process including the personality issue (Glasl and Ballreich
2004).
The systematic conflict prevention is feasible on the following levels:
Intrapersonal level: get persons truly involved in a project, approach his personal
need, assess his match in a team (see Chap. 14, Human Resource Management:
HRM, sections on MBTI, Belbin), focus on issue level (Chap. 19, 06:00 Leader-
ship: L, Chap. 2, 07:00 Planning & Scheduling: P &S).
Interpersonal level: support Forming and Storming phases with profound inter-
personal coaching, promotion of honesty, trust and openness (Seifert 2003).
Procedural level: good effects are reached in teams, where leader was
accompanied by someone taking more care about the HRM-issues.
Meta-level: team shall encourage each other to learn from the current situation
and train the adaptation at each level. This corresponds with the change culture
in a team. This meta-learning and meta-communication offers each team mem-
ber an insight into others position, thus increasing the mutual understanding and
lowering the conflict potential (Glasl and Ballreich 2004)
Prevention by exclusion of some groups or early warning systems as
recommended by Matthies (Matthies 2000) is not considered as particularly effec-
tive due to the usually small project teams and innovative character of the projects.
Prevention is the best approach to conflicts. So the team observation and workshops
are briefly mentioned below.
The basic technique in conflict solution is the presented below PACTAR (from
Spanish for to negotiate, to agree). On the base of PACTAR, Feedback, Con-
structive Dispute and/or Negotiation may be applied. Feedback and Negotiation are
treated here under the criterion of their usability to solve the conflicts. Feedback and
Negotiation as means of communication are discussed in Chap. 17, 02:00 Commu-
nication: COM.
00:31 Conflict Prevention Techniques
Observation
An efficient way to detect potential conflict or to gather the information concerning
conflict potentials is the observation of team members.
An experienced and socially competent team member, which does not have to be
project manager can evaluate the symptoms of conflicts (section 00:21 The
Definition and Indices of a Conflict) in a team in its early stage. Awareness
about conflict sources (section 00:22 Potential Sources of Conflicts) helps to
direct an attention towards specific symptoms.
Workshops
Conflict Management Trainings
Trainings regarding conflict management are twofold:
Training on how to avoid conflict situations
Trainings on how to handle the conflicts if they emerge.
Already awareness about the potential sources of conflicts helps the team to pay
more attention towards avoiding the conflicts.
Training on how to handle the conflict once it occurs, wakes up another wish in
team members, to avoid being dragged in such a dispute. Otherwise, the knowledge
acquired during these workshops is useful in successful conflict solution, once the
necessity emerges.
00:32 PACTAR
PACTAR is an acronym of first letters of the areas, which conveniently shall be

considered and applied in conflict solving:
P for Priorities
A for Attitude
C for Conduct
T for Thinking
A for Acument
R for Resolution
The sequence is stimulated by meaningful acronym and does not reflect neces-
sary the logic of an approach, albeit does not contradict it either.
Vast literature on what shall be observed and which techniques are to be used
seems rather to reflect the individual views of the authors, than be justified by some
systematic or deduced process (Spiess and Felding 2008; Gellert and Nowak 2010.;
Glasl and Ballreich 2004; Triebe and Wittstock 2003; Seifert 2003; Van Slyke
1999; Bracken et al. 1998). Whenever the list of good and unrelated advices extend
the number of 9 (seven plus minus two, Miller 1956) or even less, according to the
newest research: three or four (Farrington 2011), the cognitive load on our short
term memory exceed our capability to work with it and the good advices are
fruitless. An acronym of six areas shall help to navigate and lead successfully the
conflict solving process.
P Priorities
Conflicts occur between people. Their perspective is the source of conflict so it is
necessary to solve this issue first. In the hierarchy of perception the emotions block
the reasoning, thus only if the emotions will be calmed down, the interests and
personal values may be addressed.
Priorities golden rules:
Personal affairs have priority over matters
Emotions have priority over interests and values
A Attitude
Successful approach to conflict solving demands, that both adversary parties as well
as moderator share the positive constructive attitude in the sense of Eric Berne
(Berne 1964/1996) I am ok- You are ok. Bon mot of this approach says I believe
I can do it and I think the others can do it, too. The golden rules are an extract of
this approach.
Attitude golden rules:
I am OK, you are OK
My attitude is that of a winner
We strive for a Win-Win (1 level) solution for all
We are equal and have the same rights
Everyone is as he is
Everyone is autonomous
Everyone has right to have his own opinions, needs, feelings
Everyone responsible for himself
Everyone is honest and act correctly
Everyone can make errors and have the right to change
Abandon any comparison
Treat everyone openly and with respect
Consider everyone as important as you are
Criticize constructively, do not humiliate
C Conduct
The dynamics of conflict solving demands permanent control of the situation. All
participating, including moderator shall follow the below golden rules. However, it
is moderator, who is responsible for the course of development and therefore he is
expected to conduct the conflict solving along the golden rules.
Conduct golden rules:
React as soon as conflict detected
Each other address directly
Encourage adult-adult dialogs (Transaction Analyses, Chap. 17, 02 :00 Commu-
nication: COM)
Promote the reciprocal positive feedback
Avoid indirect conflict amplifying factors
Accept blender of emotions
T Thinking
The thinking habits emerge from the rule of effective dialog: make someone else
your own truth and see it with his eyes (Tischner quoted by Bozejewicz 2006).
Gellert and Nowak modified Peschanel approach (Gellert and Nowak 2010) adding
to this the meta-perspective of judgment going above the two adversary positions
and evaluating the situation from the third, neutral and independent perspective.
The capability to think on a meta-level is most demanding and not common in our
daily life. Author was frequently encouraged by his coach to step aside and look at
the situation you are in from outside. Is it going the way you really want? Here is
where we learn. Moderator takes the responsibility to encourage both adversaries to

take at least a glace at the conflict from each position.
Thinking golden rules:
Think I: what are your real goals? Does this conflict contribute toward
achieving them?
Think You: What are his goals? How does the conflict contribute towards his
goals?
Think Meta: Do both sides works towards their goals? What is the impact on a
team, project, and customer?
A Acumen
1979 Harvard University Chair of Negotiations started a series of Workshops under
what is now called Harvard Project and developed a series of rules, published by
Fisher et al., and revised 10 years later (Fisher et al. 1981, 1991). Geller (Gellert and
Nowak 2010) simplified position abandonment by advising to concentrate on
motives in Harvard Method rules. Hereafter, the original rules are quoted as sharper
acumen formulations, precised with explicitly naming joint effort in common
conflict solution goal and options elaboration. The last of the Harvard Method
rules concerning the standards is considered as part of resolution (R in
PACTAR) and therefore is quoted there.
Acumen golden rules:
Dont bargain over position.
Separate people from problem
Focus on interests not positions
Jointly set the goals and invent options for mutual gains
R Resolution
Each of the parties consider its rules to be the right one. By looking for objective
standards we rather win the acceptance of the results by both sides. This is the last
rule of Harvard Method presented above. The second is the attention to the
recurrence. If what seems to be solved does not really make the parties working
together, we certainly still did not found the real reason of the conflict so we shall
be back on track as early as possible. And lastly to go along the method presented
above and truly fix the solution joyous alternative thoughts shall be spread. So the
golden rules for resolution attention are:
Resolution golden rules:
Insisting that the result be based on some objective standard
Recurrence means real reason is still undiscovered
Agreement is a reason for a joy
00:33 Feedback in Conflict Management
Feedback supports the clarification of the conflict reasons and accelerates the
evaluation of possible alternatives in search of conflict solution. On the base of
PACTAR the parties shall:
Say all what disturbs, exemplify

Provide and accept feedback
Observe, that one speak at a time
Express direct criticism
Clear opinions, facts, problem formulation
No rumours, no complains, no guesses
Listen actively
Active listening, presented hereafter more thoroughly as part of efficient Com-
munication (see section 02:30 Techniques and Tools) is advocated by Van Slyke
(Van Slyke 1999) as the key to successful conflict solution. Van Slyke extends
listening concept to the analysis of ones own approach covered here in PACTAR.
00:34 Constructive Dispute
The disagreement between the parties may be solved in a dispute, where both
parties present their views. Whereas negotiations have some goals and an element
of bargaining, dispute may end without real changes in the positions or direct wins.
It basically clarifies for both parties the views and positions of the adversary,
leading to some better understanding of the actions. Dispute is effective only for
low level conflicts, still in their initial phase. Burgess and Burgess (Burgess and
Burgess 1996), Triebe and Wittstock (Triebe and Wittstock 2003), Seiler (Seiler
2003) and Lee (Lee 2006) extends PACTAR with following rules:
Every dispute must have its beginning, but also a clear acceptable ending
Proceed incrementally, atomize the problem,
Consider long and short terms measures of success
Wake-up an awareness of unavoidable Win-Loss in case of failure
Work creatively beyond the written rules and obligations
If in doubts ask someone you trust for his perspective of the situation
Make deposits in your Goodwill Bank Account
Pursue positive interactions beside conflict issues
00:35 Negotiations
Negotiation is a form of dialog between two parties targeted in clarifying the

differences in opinions, values and eventually leading to the gains for both parties.
Even if the conflict starts with the immaterial misunderstanding by formulating
clear gains for both parties conflict reaches higher probability of successful resolu-
tion. The principled negotiation (Fisher et al. 1981, 1991) viewed as bargaining the
mutual gains can be pursued virtually between any party and even on the higher
levels of conflicts: two (win-lost) or three (lost-lost crisis). With PACTAR we
shall observe the following rules:
Prepare: goals, trades, alternatives, strategy and results
Know your BATNA (Best Alternative to a Negotiated Alternative)
00:50 Activities and Deliverables of Conflict Management Process 333
Table 16.3 Example

Deciding about strategy based on outcome analysis
Adversary: __________________________
The results when adversary goes on His win His win
confrontation My win My win
The results when adversary behaves His win His win
cooperative My win My win
. . .in case of our cooperative . . .in case we choose
attitude conforntation
Work holistic
Accept and work on creative solutions
Create trust
Support positive, suppress negative emotions
Consider cultural differences, differences in thinking, time
00:40 Templates
Good preparation to conflict solution includes the elaboration of the strategy. We

evaluate our wins and the possible wins of our counterpart in each combination of
cooperation and confrontation strategies. The results are written down in
Table 16.3:
00:42 Documents of the Project Results
Example of notes of conflict resolution and control dates documents the progress in
conflict solution (Table 16.4).
00:50 Activities and Deliverables of Conflict Management

Process
Tasks
Create a system of conflicts recognition
Define the process of conflicts solution
Choose prospective mediator of conflicts in team
Assure that core team agrees on all processes
Table 16.4 Example

Issue (title)
0 Document information
Participants, minutes writer, date, recipients
1 The parties of the conflict
We should record information about partners, third parties participating in the conflict (both inside
and outside the conflict)
2 The reason of the conflict
We should record the reasons of the conflict as well as the framework conditions in which the
conflict took place
3 The results of the joint clarification of the reasons
We should analyze the results of recognition carried out in point 1 above. We should also make
place for the roles and participants, their tasks with the corresponding scope of responsibility and
competence, their personality and situation in the team
4 The evaluated alternative solutions and chosen one
We should document various alternatives jointly evaluated and the results and measures taken in
order to solve the conflict, which were agreed with the people participating in conflict solution
5 Control
If measures have been taken, at a further stage we should check their utility in problem solving and
the success achieved due to them. If it turns out that the measures are not good enough to solve the
conflict, or when the result in not satisfactory, then we should check the measures themselves,
form them from the scratch or properly complement them
6 Benefits in project management
We should describe precisely the benefits for project resulting from the taken measures
7 To dos and next steps
Here we shall list what accompanying actions are necessary to proceed with the actions and
measures taken by the conflicting parties
The exact control dates for results evaluation shall be set
Results
Plan of the conflict management
Agreed project management processes
Tasks
Assure, that team members understand and accept fully project processes, plans
and schedules
Carry out a training concerning conflict solution
Observe sources and indices of potential conflicts
Attempt to solve the appearing conflicts as soon as possible
Introduce changes (with reference to a product and a process) in order to avoid
similar future conflicts
Take other conflict prevention measures, beside those, which lead to changes
Bibliography 335
Results
Accepted by all team members project processes, plans and schedules
Team members prepared to handle and prevent conflicts
Change requests resulting from conflict solutions
Lessons learned input to Knowledge Management
Tasks
Same as in the planning phase
Care about the shift in sources of possible conflicts
Results
Same as in the planning phase

Tasks
Same as in the realization phase
Care about the shift in sources of possible conflicts
Conduct the project closing review on passed conflicts
Results
Same as in the realization phase
Total evaluation of the conflict management process results in project
General conclusions passed to Knowledge Management.
Positive feelings of all team members with regard to the successfully managed
conflicts in team
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Berne E (1964/1996) Games people play: the psychology of human relationships. Reprinted 1996.
Grove, New York
Bozejewicz W (2006) Tischner: poglady filozoficzno-antropologiczne : szkice. osgraf,
Warszawa
Bracken G et al (1998) Conflict management handbook. United States Department of Interior,
Bureau of Reclamation, Washington
Burgess G, Burgess H (1996) Characteristics of more constructive approaches to intractable
conflicts. Conflict Research Consortium University of Colorado, Boulder
Cadle J, Yeates D (eds) (2008e) Project management for information systems, 5th edn. Pearson/
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8 erg. Auflage. Freies Geistesleben GmbH Bern-Stuttgart
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Axel Springer Schweiz AG, Zurich
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checklists and case studies. Springer, Heidelberg
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Deutschen Wirtschaft e.V. (Hrsg) Projektmanagement Fachmann, Band 1; 7. Auflage,
Eschborn
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Auflage. Rationalisierungskuratorium der Deutschen Wirtschaft e.V. (Hrs). Eschborn
02:00 Communication Management: COM
17
Quick Look
What Is It?
All scientific recognitions, all practical experiences point out, that communication
is the most important process and communication capabilities in team as decisive
for project success. Here we take care about it.
Who Does It?
Communication is a task of project manager. But he may at least partially delegate
this to a gifted team member.
One of main reasons of project failures is inadequate communication. Best
specialists rely on inputs from other team members; customer may be soothed
with a right explanation of delays, majority of conflicts, deteriorating team perfor-
mance, may be avoided with sufficient communication.
What Are the Helps?
Verify and close pending process improvements and tasks. Verify communication
in team and take suitable action: network adaptation or team member training. Take
charge in special cases. After verifying all roles check if Change Request or
Knowledge Management shall be addressed.
What Is the Work?
You have various personalities in team and among the sponsors. You have various
types of perception and habits. It is a challenge firstly in cooperation with HRM to
stimulate the right approach of each team member towards communication, than in
collaboration with OM to continuously trace and adjust communication network.
Difficult communication cases land with you here they may take a considerable
amount of time.
Take time to analize the personalities and perception types in your team. Pay some
attention to project stake holders. Care about continuous adjustment of communi-
cation network to informal roles in team. Work with OM to elabortate most

338 17 02:00 Communication Management: COM
effective formal organisation. Team members are not trained in communication

identify the deficits and work together to close the gaps. Take charge of difficult
communication issues you may be the best one to solve them.
Process
As in majority of processes first the outstanding issues are to be treated before the
team communication may be evaluated. If needed, communication network
changes, trainings are to be initiated. Special communication situations are handled
in this process. Finally also here change requests and knowledge content are to be
passed appropriately. Process may be triggered by Change, Problem or Integration
processes Fig. 17.1.
02:10 The Goal of Communication Management
The goal of Communication Management is to assure effective and efficient

information flow within internal and external structures of a project with the sole
goal of supporting the successful project realization. It comprises both the plain
information flow as well as marketing.
02:20 Methods
One of the characteristics of a project is that a project team is created for the time of
projects realization. Usually the members of a team do not know one another and
have no working communication patterns. Same time project manager in large
complex projects spends 88 % of his time on communicating (Holt 2008, p. 1).
Pinto and Slevin consider communication as a key element in transferring
project strategy to tactics and successful implementation of the last (Pinto and
Slevin 1988). The evaluation of IT financial projects of Bull in UK pointed
breakdown in communication as a source of 57 % of project failures (IT-Cortex
2011). According to Skaik communication is a source of 75 % of failures in
construction industry in Gulf states (Skaik 2010). Salleh examined and interviewed
project partners in construction project in Brunei to find out, that communication
was the main cause of failures (Salleh 2009, page 111). Anderson sees communi-
cation as one of the three top reasons (Anderson 2010). According to Thamhain
(2004) communication is the main driver behind team performance.
We conclude that communication in project management is the key success
factor.
02:20 Methods 339
PBM, IM, CM
02:00
Pending process
improvements
and tasks
Review communication
in team
Yes Communication
Network changes? Network Procedure
see 02:24
No
Yes Communication
Team trainings
appropiate? Methods Procedure
see 02:22
No
Any special Yes Special Communication

communication? Procedure
see 02:29
No
Any Yes
change CM
necessary?
No
Yes
Lessons learned? KM
No
Fig. 17.1 Communication process (COM)
Communication in ISO 21500:2012
ISO 21500:2012 (ISO 21500:2012 2012) which rather reluctantly includes the human
factor into the standard processes devotes three major processes to the communication
only:
4.3.38. Plan Communication
4.3.39. Distribute Information
4.3.40. Manage Communication
The first of them, process 4.3.38 Plan communication is subsequent to budget
and schedule development processes. So far it corresponds with the cybernetic
approach of L-Timer presented here. However, as in the cybernetic operation the

feedbacks and loops are part of the concept, so in the ISO standard the recurrence is
admitted but not directly stipulated. This has a significant consequence on the
correctness of budgeting and planning. Communication induced significant efforts
and if not budgeted and planned already on the start, handicaps significantly the
project success perspectives.
Similar criticism may be express to the next, 4.3.39. Distribute Information
process. It follows the Select supplier and Manage stakeholder processes in the
Implementation group, whereas the needs at least of the last in the initiation and
during the planning remain void.
Lastly also the process 4.3.40 Manage Communication is bound in a control
processes group in loop with control project work and control changes. The relevant
contribution of the communication to goal alignment and motivation of the team is
in the description considered, but in the operations apparently neglected.
The 02:00 Communication Management: COM process presented hereafter
binds in a system all phases of the project, starting with the Initiation Phase through
Planning, Implementation up to the Closing & Evaluation Phase, covers all the
issues considered in the ISO 21500:2012 standard and goes beyond addressing the
issues, experienced by the author of this book in his daily practice.
02:21 Project Team Communication Model
Communication in project focuses on communication between two persons. There-

fore it is called interpersonal or dyadic. In a team more or less everybody commu-
nicate with everybody so we have ([N x (N 1)]/2) combinations of inter-personal
dyadic relations. Public broadcasting is not considered as a primarily objective of
communication in a team and therefore is not considered in this book. In project
with wider social impact where such a communication need may arise, reader is
recommended to turn to the broadcasting literature.
Also the intrapersonal communication is beyond the scope of this book the
reflexive part of it is treated in Chap. 18, 04:00 Self-Management (Work & life
Balance: SM).
We recognize the role of phatic (small talk) communication in team forming
stage and stakeholders first encounters, yet we exclude this from further
considerations as we exclude the intimate communication, too.
We view the communication as a process between sender and receiver (see
Fig. 17.2).
The original unidirectional (called also linear) model of Shannon and Weaver
(Shannon and Weaver 1949) used ambiguously in interpersonal as well as in
telecommunication industry, has been refined in 1954 with bidirectional communi-
cation by Osgood, leading to the so called transactional model, where both parties
are simultaneously sender and receiver (Osgood 1954). Same year Schramm
positioned this model on the experience background of sender/receiver (Schramm
1954). Berlo in 1960 defined the communication channel (medium) attributes
related to human senses (visual, auditory, kinesthetic, olfactory, and gustatory
02:20 Methods 341
Conscious message
Conscious reply
Medium
(Channel)
Unconscious message
Unconscious reaction
Sender Receiver
Fig. 17.2 Project team communication model
(Berlo 1960). Verma (Verma 1996) defines the sources in Schramm experience as
perceptual differences in words, culture, judgments, values, emotions and
personalities. Some authors differentiate between intellect and emotions (Jenny
2001), what in authors opinion diminish the role of judgments and values, others
verbal and nonverbal communication (Mehrabian 1972, 2009), which although
indisputably relevant, again does not truly reflects the interpersonal dyadic transac-
tional communication.
Author of this book prefer to differentiate between the conscious and uncon-
scious communication following Hymnes (1964). The Sender with the experience
background sourced according to Verma send conscious verbal and nonverbal
messages, which Receiver in turn perceives with his Verma experience field.
Both sides integrate coder (Sender) and decoder (Receiver) and use consciously
medium, over which a communication channel is created.
Simultaneously with conscious start of message exchange, both sides begin the
uncontrolled unconscious communication: both in verbal part (e.g. addressing
senses like auditory sense when unaware one rises his pitch tone) and in nonverbal
part (gestures, olfactory effects).
The medium and channel subject to noise disturbances conscious and uncon-
scious messages may reach distorted the receiver (Is it not often, that our partner get
it wrong way, despite our intensions, and prepared speech?)
The second authors preference is notion of message exchange between the
sender and recipient rather than information flow. Information is a chain of
characters vastly context free (Chap. 11, 16:00 Knowledge Management: KM,
section 16:21 What is Knowledge). Several such chains may be needed to build
a reasonable content to the receiver.
Communication occurs in chunks each of them containing the information

which is encapsulated in some initial and closing signals and which combines both
the consciously as well as unconsciously send messages.
We summarize the project team communication model as follows:
1. Sender
Initiates the process of communication
Chooses the medium and prepares his message for the recipient
Send consciously and unconsciously straight and coded messages.
2. Receiver
Receives and decoded the messages and by confirming its perception (any-
way: conscious and/or unconscious) establishes the communication channel.
Perceives both conscious and unconscious messages and with cognitive abilities
combines them together with own experience to the received overall message.
3. Channel/Medium
Connection between the sender and the receiver
Is used both by conscious and unconscious communication
Subject to interference and distortions due to e.g. environment.
There are different means of communication such as e.g.: spoken or written
language
Has different human sense related attributes, such as visual, auditory, kines-
thetic, olfactory, and gustatory
4. Message
The quality of the incoming information depends on different factors, such as
e.g.: the exactness of transfer or the level of interference in the channel
Medium chosen for messaging has an impact on the message perception
(precise language, clear handwriting, unambiguous utterances etc.)
The received overall message is the cognitive combination of:
Consciously send message
Unconsciously send message
Experience of the Receiver.
5. Reaction
Reaction has conscious reply and unconscious reaction
There is a possibility that the message will be properly passed but interpreted
in a wrong way,
The reaction of the recipient shows the sender whether the message was
delivered, in which form and how it was interpreted,
The receiver informs the sender, how his/her behaviour is perceived, under-
stood and interpreted,
Feedback reflects the thoughts and feelings of the receiver.
02:20 Methods 343
02:22 Dynamic Model of Transaction Analysis
Our way of communicating is biased by the Schramm experience with

differentiating sources of Verma like personality, values, judgment. Eric Berne
conceived an integrating theory, which combined the behavioral analysis with
psychological way of thinking, named Transactional Analysis (TA) (Berne 1961,
2001). TA bases on the concept of Ego(I) of human personality, which
combines emotions, judgements and behavior and offers comprehensive method
to evaluate the interactions between the people.
Ego according to TA may be in one of the three following states:
Child (Ego): Behavior is driven by the memorization of internal events like
emotions and feelings, linked to external experience, up to the edge of about five.
Subsequently the child may be obedient or protesting, free of adaptive. Child
calls e.g. for help because is hurt.
Parent (Ego): Collected experience from external events pushes someone to
judge the events and persons and behave along the experiences and learned
rules. Parent tends to be either sceptical (compares all to standards, rules, knows
always better way, e.g. keep knife in the right hand, fork in the left) or very
solicitous (taking care even where it is not any more necessary, like some
mothers, who still do household of their 50-plus children). Parent does not
reflect, that someone may be left-handed or that children might be better suited
to live when left alone.
Adult (Ego): More or less 1 year old child began to learn from his own
experiences; an adult in child is born. Adult evaluate on one side the taught,
observed experiences and on the other side the emotional feelings. In other
words Adult evaluates the Parent Data and Child data and put them into the
context of current situation. It is thus depicted as being between the Parent and
Child Egos.
When now Sender initiates the communication, he sends a stimulus from a
specific position addressing the specific position of the Receiver. Reply is a
transactional response.
Simplest case is illustrated in Fig. 17.3, when an Adult (Ego) addresses another
Adult (Ego) and the response is given in the same level: Adult to Adult. If one side
chooses to address asymmetrically and the other side from this Ego responds to the
sending Ego the situation is stable, too. Communication based on such comple-
mentary transactions can be carried on without any interrupt (Berne 1964, 1996).
The more complicated situation arises, when one or both parties choose the cross
transactions (see Fig. 17.4).
Crossed transactions signal the emerging conflict in most cases the communi-
cation brakes down.
The complexity increases, when the social level of communication differs from
the psychological one. To large extend our unconscious communication is respon-
sible for this dichotomy, but it can be also purposely conducted by one of the parties
(see Fig. 17.5).
Parent Parent
Adult Adult
Child Child
Sender Receiver
Fig. 17.3 Complementary transactions in TA
Parent Parent
I suggest to hire
consultant
Adult Adult
Child Child
Sender Receiver
Fig. 17.4 Crossed transactions in TA
Sender, by addressing his message expresses recognition to the other side

much needed stroke in Bernes theory. Stroke may be positive or negative, but
according to Berne the recognition hunger is necessary for adult communication
(Berne 1964, 1996) and that is what is most productive in project environment.
Personal ego grams nach Jack Dusey are available from numerous resources,
like e.g. http://www.psyquo.com/EN/Egogramme/Egogramme.html.
02:20 Methods 345
Parent Parent
Shall I come
tomorrow?
Adult Adult
I will drop you a
message
Child Child
Sender Receiver
Fig. 17.5 Social (plain) and psychological (dashed) lines of transactions in TA
Project team
Users
Project sponsors
Influential people
Stake holders known by name
Anonymous recipients
Fig. 17.6 Priorities in communication management
02:23 Sender Priorities in Communication Management
Even if Project Manager would allocate 100% to the communication (he does in
fact up to 88 % see above), he can not satisfy all needs for information and all
needs of team internal and project external marketing. So he has to set the priorities.
His first priority is project team. As much information as they need to function
and as much of marketing of unpopular jobs as necessary, shall be the main goal of
communication in a project. (see Fig. 17.6).
The second most important group are users of project results. They influence the
project sponsors opinion and may decide about the project fate by simply denying
to use its results. Only than (Priority no. 3) project sponsors shall be considered
they let themselves to get influenced by users but also by influential people from
their direct social environment. The last shall be the project manager next priority
(Priority No. 4). If the needs of the above groups are satisfied, project manager may
devote him to people known by name (they may have some impact on project 1 day,
Priority 5) and at the end to anonymous recipient (making a web page for a project
may be nice, but does not really help the project to meet its goals).
Each of the groups and each of the cases demand dedicated, target oriented
conscious method of communication and the suitable technique.
02:24 Sender Network
Best case communication in a project follows exactly the organizational structures,

designed in the Organization Process. However, for the following reasons this never
really happens:
Even the best assignments of roles to carefully selected personalities can not
foresee the dynamics of team development and final informal roles, which
impacts the communication
The most efficient teams pursue the free mesh of communications between team
members along needs, professional competence and just personal preferences
Customer or partner places new members in team the whole process of team
integration starts and new role assignment take place.
An example, quoted from Lundgren (Lundgren 2005/2013) shows a constella-
tion, where after contract has been signed, green customer employees (two in raw
on the left top) joined the team, which worked in two autonomous smaller teams
(violet, 2 rows on the right and all in bottom line). Team members acted along their
primary (bold) and secondary Belbin roles (Chap. 14, 20:00 Human Resource
Management, section 20:26 Role Owner Satisfaction). Excellent working com-
munication is marked with heart, good with sun, broken with clouds.
Considering the above, Sender setting his the communication network shall
consider the following strategies:
The functional interrelation between sender and receiver is weak (in the example
in Fig. 17.7 SL: project leader and RH: data base expert). The unidirectional
linear (Shannon and Weaver) information flow with most efficient medium shall
be chosen. The receiver is expected to acknowledge the message reception.
No content agreement is attained. The group dynamic may be neglected.
Examples are minutes of the meetings passed to superiors (here from data base
designer to project leader).
The functional interrelation is strong and relevant to project fate. Both parties
have to agree on common understanding of content. The interpersonal commu-
nication has to work at its best. The Osgood-Schramm-Berlo-Verma model shall
be explored to obtain the best understanding and negotiated results.
Sender addresses larger group of team members to stipulate certain actions
(marketing). Receivers do not need to agree with the sender, but their actions
should conform with sender expectations. The unconscious reactions of
Receiver are not relevant.
02:20 Methods 347
Fig. 17.7 Communication preferences in a team (Lundgren 2005)
02:25 Medium Channel Types
The attributes in Berlo model of medium channel refer to human senses. In

addressing the Receiver, Sender may consciously use or unconsciously expose
himself addressing one or more of the following senses:
Visual Type (Eyesight) Visual presentation is the most efficient way. Preparing
graphical presentations, work with the use of diagram, sheets, figures, models
etc. we reach best perception.
Auditive Type (Hearing) Auditive types register the heard information, recon-
struct it and store it with a great ease. It is effective to present personal
information in the form of personal conversation and discussion. Use music or
other sounds associations to strengthen your message
Kinesthetic Type (Feeling) It is very appealing to pass information most of all as
an action. Putting an arm around kinesthetic type we most likely impel his
acceptance, once we are accepted in his social intimate sphere (see section
02:26 Medium Channel Environment, Cultural Impact).
The three above types of perception are most frequent. However, the Receiver
can show the traits of further types of perception which requires a proper choice of
other measures:
Gustatory Type (tasting) Not coincidentally in many meetings sweets are on the
table. In many cultures meal is the beginning of any business negotiations. We
react to taste and pleasant associations promote our message.
02:26 Medium Channel Environment, Cultural Impact
Medium Channel Environment is an externalization of Sender and Receiver

Cultures. The social aspects are considered in Team Culture Adjustment 22:25.
An impact on communication is in:
Context Dimension (what our message conveys). The meaning of the message is
placed in personal, situational, cultural, contexts. Message may contain com-
plete information as meant by e.g. Swiss-Germans (one extreme) or only hints to
search in context as viewed by Japanese (Cardon 2008). The impact of gender
determines the mutual perception of message (Bull 2002).
Procedural Dimension(how we lead the conversation). Example from Morris
and Peng (1994): Americans prefer to resolve disputes through procedures such
as arbitration or adjudication in which a third party decides on the settlement.
Chinese people, viewing the communication as infinite interpretation process,
prefer procedures in which the two disputants reach the settlement through
compromise, such as mediation or bargaining.
Socio-technical Dimension (language, used means). Behind the obvious varia-
tion in linguistic groups much stronger impact has culture on interpretation of
direct and indirect communication (there are 16 evasive maneuvers to avoid
saying no in Japanese (Yum 1988). The e.g. contextual conditioning of
Japanese over context preference of western cultures direct their interest to use
joysticks and virtual reality interfaces instead of roman keyboard (beside obvi-
ous character limitations) (Ess 1999).
Spatial Dimension (how we react on physical distance between sender and
receiver). Hall (1966) created based on physiological reactions proximity theory,
which gained particular relevance in analyzing spatial perception in intercultural
communication. The personal spaces of Hall are:
1. Intimate (pericutaneous), reserved for closed friends and intimates

2. Personal (peropersonal), where we accept selected, acquainted persons
3. Social and Consultative (extrapersonal), most comfortable for interpersonal
communication and new acquaintances.
4. Public, impersonal and anonymous distant communication
The original Hall perimeters are correspondingly 1.5, 4, 12 and 25 ft. Beaulieu
(2006) places this distances in relativity to the cultural group. Anglo-Saxons need
the largest personal space, followed by Asians, whereas the Mediterraneans and
Latinos the smallest. Not surprisingly then, that American may perceive the Latino
socialization as an invasion in the personal sphere.
02:27 Receiver Transition Model
Sender has to be aware, that Receiver who is not expecting our message, passes first
through transient phases before he can focus on the merit of our message.
02:20 Methods 349
Fig. 17.8 The four-ear-

model of Schulz von Thun
(1981/2001)
What is What's
with him? going on?
Self- Factual
Statement level
What he
thinks
What does
about me?
he want
How he
from me?
treats me?
Relationship Appeal
Indicator
Following Schulz von Thun (1981/2001) the Receiver reacts on four levels,
which once initiated, remain open for the time of communication.
Factual level: focus on dates, facts, content
Self-statement: hidden or direct reference to the Sender
Relationship indicator: shows the relation between the author and recipient. It is
reflected through e.g. the chosen form of utterances, intonation and other non-
verbal accompanying signals.
Appeal: through the appeal the author wants to evoke certain action performed
by the recipient
The four-ear-model is shown in Fig. 17.8.
02:28 Receiver Information Distortions
If finally the message from Sender over medium and reaches the Receiver and even
if the channel has been established, the perception by the Receiver may be distorted
in the following ways:
Reduction (denial)
Misinterpretation (projection, displacement)
Generalization (objectification)
The terms in brackets comes from Flannes and Levin (Flannes and Levin 2005)
Reduction (denial) occurs, when we deliberately or unconsciously reject e.g. a
message or part of it with some unwanted news. When symptoms of rejections
become perceptible, the countermeasures are necessary: message reverting, organi-
zational changes, conflict solution.
Misinterpretation may be intentional or unconscious mainly depending on our
management style. Being authoritarian we rather tend to suppose the team to share
our views without verifying that. In collaborative environment the fast and vivid
feedback culture allow to keep under control this, what is called projectionby
Flannes and Levin. Other form of misinterpretation happens, when we interpret a
message with some strong emotional bias caused by other not related with the
message reasons. The displaced feelings may avert our sincerest intentions.
Generalization or Objectification is the common consequence of project man-
ager hectic life. He tends to speed-up the process of message processing by
classifying the source, or subject or Sender into his own classes, slipping may be
most relevant nuances of the message.
02:29 Special Communication Procedure
Few cases may require direct communication by person in charge of this process:
when more than interpersonal communication is involved e.g. broad stakeholder
information about newest project problems or complicated changes in planned
integration. The particular and presumably needed advanced method and
techniques of communication beyond those presented in this book may be limited
to one or few persons involved, allowing team to concentrate on merits.
The techniques presented below are applicable both for the exchange of exact
information as well as marketing purposes and are considered sufficient to manage
the project.
The particular psychological and sociological techniques of marketing grip are
unsuitable in team, where confidence and trust shall prevail. Therefore, they are not
considered here.
02:31 Sender MBTI-Oriented Communication
In communication team members have to deal with each other personality

differences. Table 17.1 gives an overview of suggested methods and techniques
in dealing with specific types of MBTI dimensions (Chap. 14, 20:00 Human
Resource Management: HRM, section 20:23 Recruitment and Evaluation)
according to Flannes and Levin (Flannes and Levin 2005). The detailed description
may be found in this source.
02:32 Visualization Techniques
Visualization is the visuospatial presentation of information targeted for processing

by the visual sensor system (Scheiter et al. 2009). Visualization is parismonial as
Table 17.1 Communication recommended towards MBTI dimensions extremes acc. to Flannes
and Levin (Flannes and Levin 2005)
Dimensions
extreme Recommended type of communication
Extraversion Get together personally to think out loud
Introversion Help draw out this person, and then give them some time to privately reflect on
your message
Sensing Present tangible facts, examples, data, and real-world experiences to make the
point
Intuition Offer a big picture overview, presenting concepts that are crucial for your
discussion
Thinking Present arguments that appeal to a rational analysis of the facts; appeal to the
head
Feeling Talk more from the heart, using statements that address values and gut-level
decision making
Judging Be orderly in presenting your message, and keep the discussion moving
towards resolution and closure
Perceiving Allow for an open-ended discussion, staying flexible about the agenda
the spacial characteristics are included in picture (the famous and yet anonymous
statement that a picture may be sometimes worth 10,000 words), expresses more
information with less symbols, is more specific and less arbitrary, in conclusion,
convey more efficiently and effectively the information (Scheiter et al. 2009;
Gilbert 2005). Bagett in his bushiness hypothesis (Baggett 1984) arguments that
the knowledge acquired from visual representations is better accessible in human
memory as the brain nodes share more associations with other nodes in semantic
network. These thesis supports Scheiter, Wiebe and Holsanova (Scheiter et al.
2009) stating that the visual information are processed in parallel, therefore accel-
erate the cognition process.
Successful Visualization:
1. Choose purpose of the visualization:
Decorative, Affect, Replace and augment the real world, structure, repre-
sent, interpret or transform (different presentation of otherwise stated
thesis)
Scheiter, Wiebe and Holsanova (Scheiter et al. 2009)
2. Choose structure:
Overview first, zoom and filter, then details on demand (Schneiderman
1996)
3. Bear Receiver perception capability in mind:
34 Elements may be simultaneously kept in human short term memory
(Farrington 2011)
4. Choose means supporting your purpose:
Use real photos if associations are searched, use models to stipulate the
imagination, use graphics, charts to illustrate the structure.
(continued)
5. Consider the eye perception capability of the Receiver:

Design your visual presentation differently for the self-study (3050 cm
distance from a 20 in. 1728 2050 pixel screen) and for 500 audience
lecture (20 m distance to 5 m diameter screen).
6. Define the semantics of your visualization:
Develop and consequently apply the logic in the visualisation: green for
remarks, red for conclusions, new chapters in headlines, etc.
For the last 55 years the learning pyramid attributed to National Training
Laboratories, Bethel, Maine yet untraceable there (Magennis and Farrell 2005)
placed visual message as superior to verbal (done with the help of words). Several
derivates like e.g. that of Grimm (Grimm 2003) suggests higher retention rate of
visual versus verbal communication. These intuitively expected results have not
found confirmation in scientific researches. Visual senses demands higher cognitive
capabilities to associate the meaning by engaging various brain areas (Scheiter et al.
2009). Kreger Silverman (Silverman 2002) suggests, that the thinking habits in
population are distributed roughly as shown in Fig. 17.9 (both extremes visual/
spacial and sequential(word) 2530 %, rest both ambivalent). We have visualizer-
verbalizer dimensions of cognitive style, each of them performing better in specific
tasks Scheiter et al. (Scheiter et al. 2009). Vessey formulated a hypothesis, that both
capabilities are relevant and mutually complementary in problem solving perfor-
mance (Vessey 1991).
We may conclude that although visualization is an important and in many cases
helpful communication technique, the verbalization is not less relevant and both
shall be mastered in efficient project management.
02:33 Verbalization Techniques
The efficiency of the verbalization may be attributed to two reasons, based on

conclusion from Scheiter et al. (Scheiter et al. 2009):
Word becomes meaning through conventional or cultural heritage, thus are
considered in context of the environment and medium/channel impact by the
Receiver, generating more information than purely transmitted verbalized
thoughts. Yet, it demands higher capability of association in memory.
Cognitive brain processes are simpler, as the words address directly the
meanings associated with them as opposed to visual accentuations, where first
the interpretation of the picture has to be involved.
In project communication verbalization allows for goal oriented optimization. In
highly context sensitive information, e.g. in Knowledge Management, Change
Management we may use abbreviations, references to some project occurrences,
whereas in Documentation Management, Integration Management another broader
context demands precise full descriptions.
Visual-Spacial Ambivalent Visual-Spacial Sequentia/Verbal

Learners and Sequentia/Verbal Learners
Learners
Less than 30% about 45% about 25%
Fig. 17.9 The cognitive style distribution in population acc. to Silverman (Silverman 2002)
Verbalization distinguishes:
Written Communication (letters, emails, rapports, sms, chats). The expressive-
ness is limited due to missing voice impact (intonation, colour etc.)
Oral (Spoken) Communication, spoken words, which allow for more expressive-
ness and easier mood transmission.
Written Contribution Metaplan

Written form is suited to activate passive team members (Grimm 2003). In e.g.
Metaplan (Chap. 2, 07:00 Planning & Scheduling: P & S, section 07:32 Techniques
of structuring; Chap. 14, 20:00 Human Resource Management: HRM, section
20:32 Complete Demanded Profile Definition) an introvert, shy team member
can express himself and possibly contribute significant solution in a project.
Oral (Spoken) communication is treated more in detail in the following chapters.
02:34 Oral (Spoken) Communication: Controlled Dialog
Dialog (Hellriegel and Slocum 2007) is a process whereby people suspend their
defensiveness to enable a free flow of exploration in their own and others
assumptions and beliefs. Dialog includes:
Asking questions to learn
Seeking shared meaning
Integrating multiple personal perspectives
Uncovering and examining assumptions.
Assertive Expresson of Own Opinions

The assertive, confident expression of one owns views with simultaneous accep-
tance of different views of the others create trustful, common ground for mutual
interpersonal relationship in a project.
Controlled Dialog
Controlled dialog (Pabst-Weinschenk 2004) is a technique, where Receiver first
concludes what and how he understood the message of the Sender, before he
continues with the subject.
Controlled Dialog allows for concentration on subject and reduction of personal
remarks. It is very useful, when linguistic or cultural background differences
impose varying interpretation on messages and when personal or project related

misunderstandings occur.
Constructive Dispute
None of the sides to make a looser is a cornerstone of successful controlled dialog.
Therefore, it is a suitable technique to apply during the constructive disputes (Chap.
16, 00:00 Conflict Management: CFM, section 00:34 Constructive Dispute).
02:35 Oral (Spoken) Communication: Negotiations
We treated negotiations as a technique of successful conflict solution (Chap. 16,

00:00 Conflict Management: CFM, section 00:35 Negotiations). From the point
of view of communication it is an interactive process, which takes place between
two or more interlocutors, whenever one want something from someone else and
this person does not intended to give it unconditionally (Sethi and Adhikari 2010).
By limiting the number of negotiated topics, we contribute to the successful goal
reaching. Negotiations to certain degree can be pursued also in a written form. All
other communication techniques may be applied simultaneously.
02:36 Oral (Spoken) Communication: Moderation
Project team has frequently to solve problems and various issues by discussing
them. An efficient discussion determines directly the outcome and the atmosphere
in a team. Therefore is this technique more profoundly presented here.
Moderation is guided by a third person communication of a systematic,
structured and open procedure to prepare, manage and follow-up the communica-
tion process, decision taking, and problem solving in a way allowing for general
acceptance and a project result with proper quality (Edmuller and Wilhelm 2009). It
can be achieved when the moderator leads the discussion in accordance to the set
meeting goal. However, the moderator should avoid to recommend any solutions;
he enables the group to develop their ideas, to use financial assets, to support the
brainstorming as well as common education. Moderator can use different
techniques (Grimm 2003) which we quote here with our fullest support:
Visualization (with the use of boards, diagrams),
The technique of formulating and asking questions,
The rule of 30 s (none of the participants speaks for longer than 30 s in order to
avoid monologues which do not keep to the point of discussion),
Fast reflection (each participant of the meeting provides a short assessment of the
situation); the technique can be used e.g. at the end of discussion, in order to get
reflection concerning the meeting.
Moderator by using his own experience can guide the discussion with:
Asking instead of saying,
Table 17.2 Moderators duties during a meeting

Stage of a meeting Moderators tasks
Preparation of a meeting Setting the goals of a meeting
Setting the time structure necessary to achieve the set goal
Coordination of goals and the plan of time
Meetings commencement Getting to know one another and ice-breaking
(initiation) Introduction of the subject, recapitulation of the goals of time
plan, optionally, common preparation of the goals
Setting the rules applicable during the meeting (see Chap. 16,
00.00 Conflict Management)
Encouraging to take part in the discussion (presentation of a
problem and analysis of a situation)
Directing discussion during Leading conversation and giving the floor
the meeting Sticking to the rules of the game, impartiality
Listening to the discussion
In case of controversial opinion, aiming to solve the conflict
Speaking loudly about issues which have not been referred to for
different reasons
Discussing particular subjects one more time
Constant summary of the discussion to enable quiet but tentative
people to participate in the conversation
Verbal emphasis of vital elements
Moderation of examining potential causes of problems
Explaining the meaning to the participants
Moderation of acquiring possible undertakings or manners of
conduct
Moderation of evaluation of possible solutions
Acquiring possible impact on the existing goals
Closing the meeting Fast projects reflection
Other forms of conduct
Optionally, calming down the anxious minds and emotions
Preparing materials from Preparing a matter-of-fact and prompt materials concerning the
the meeting end of the meeting
Assessment of ones own work: what was successful in the
process of moderation? What was wrong?
Moderation used in accordance with the group character, with flexibility and
with reference to a particular situation,
Directing the discussions, however allowing the group to assign the course of
action,
Taking into consideration non-verbal signals.
Table 17.2 summarizes tasks which have to be realized by the moderator during
a meeting. The table clearly indicates that a moderator does not present any material
issues but focuses on the process of work.
Very often we deal during a project with contra productive postures. Table 17.3
provides a view of the possible attitudes of the moderator or project manager.
Table 17.3 Tips of conduct with troublesome partners of a discussion

Quarrelsome team member We should listen carefully and react accurately. We should not
loose our temper when we have to answer provocative questions.
Such questions should directed to a group or ignored
Team member with never- A sly boost who wants to catch the moderator red handed when
ending questions he/she does not know the answer. Do not loose your temper.
Direct the question to the group for examination
Team member with We can get their help in case of their recognition and using their
Noattitude knowledge and experience
Knowing-all team member We should aim at integrating the team member with the group by
offering him/her some position
Shy team member Directly request his/her opinion
Callous team member Does not show any interest. We can try to contact him/her
personally posing questions in accordance with his/her interests
and the scope of professional duties
Haughty team member Very sensitive to criticism. By no means we should pay attention
to the rule of reaction
Talkative team member Interrupt the speech for the purpose of the course of discussion
and the goals (the rule of 30 s!). Apply short summary in order for
the others not to loose the thread
Placid team member It is worth to accept. We should request such team member
directly, using short summary and asking for further opinion.
This way we can check and use the strong points of conversation
participants
Competitors We should mediate between them. Basically a good method is to
settle opposite points of view. We should mediate between them.
Basically a good method is to settle openly the opposite points of
view. However, we should simultaneously pay attention to the
timetable and atmosphere within the group. It is advisable to
include other members in the discussion in order to get other
opinion. Usually it is also helpful for relaxation
02:37 Non-Verbal (Body Language) Communication
It became a common wisdom, what Schachner, Shaver and Mikulincer formulated,

that non-verbal communication plays a vital role in the process of passing information
(Schachner et al. 2005). However, both Birdwhistell (Crocett 2007; Milszus and
Rohwedder 2003) as well as Mehrabian (Mehrabian 1972/2009) evaluated the spoken
and non-spoken parts of communication:
1. Birdwhistell:
35 % of the message in conversations is conveyed by the spoken word
65 % non-verbally
2. Mehrabian:
7 % of the message in conversations is conveyed by the spoken word
38 % from paralinguistic channels, that is, tone of voice, loudness, and other
aspects of how things are said
55 % from facial expressions
Fig. 17.10 Open for our message and closed personalities
So correctly we shall talk about non-spoken, non-oral part of communication.

But as conventional wisdom better understand this as non-verbal or body
language communication we adopt this term to describe the major part of infor-
mation conveyed by unspoken part of message. Both may be used consciously or
elude to our unconscious behavior.
The non-verbal communication goes beyond the facial expressions and paralin-
guistic channels covering most of the traits referring to body and language, such as:
Face expressions (we register within 1/15 s)
Eye contact (shows interest in communication)
Gesture (shows feelings, personal organization)
Posture, body movement, body distance (relation)
Appearance (shows value system)
Type of voice (thimble, tone, loudness, tempo, rhythm and dialect, shows
demographics).
Figure 17.10 shows same person in two positions: the left one easy going is
open to accept our message, the right one with crossed legs and arms will most
likely deny any acceptance of what we try to say.
02:38 Active Listening
Active listening allows both the Sender and Receiver to verify if the message send
by Receiver in conscious and unconscious part, verbal and non-verbal, reached the
Receiver exactly along the intentions of the Sender. Here the formal content of the
message and the emotional side: conscious, unconscious, verbal and non-verbal are
jointly perceived. Emotions and senses accompany the intended message.
To reach this both Sender and Receiver shall fully concentrate on the conversa-
tion, show mutual respect, attention and willingness to accept the position and
reasoning of the counterpart. Active listening is the epitome of looking at world for
a short time period through the eyes of the interlocutor. We cannot present
arguments against a certain point of view without understanding it. Therefore, it
is vital to make an effort to listen actively (Schulz von Thun et al. 1981/2001; Cadle
and Yeates 2008; Schachner et al. 2005).
Receiver confirms to the Sender how the message has reached him and what
impression left. This way any misunderstanding may be cleared instantly and the
conversation may focus on merits.
The feedback techniques used in active listening are presented in the following
chapter.
02:39 Feedback
Feedback comes from design of automata, where output signals are looped back for
control purposes. The history starts well before Christ, but we can not determine
when first feedback loop has been deployed. Also unrecorded is first use of
feedback in interpersonal communication, subject of this chapter. Barbour
attributes this to Norbert Weiner and El-wood Murray around 1950 (Barbour 2003).
Feedback in the sense pursued further here is a conscious reaction on ones
activity and conveys the intellectual and emotional message.
The perception of the emotional part of message depends on the current interre-
lation between Sender and Receiver. Positive feedback may target positive devel-
opment of the current communication, in which both interlocutors are engaged, or
changes (corrective feedback). To be constructive feedback shall be (Hellriegel and
Slocum 2007; Barbour 2003):
Rather specific than general
Rather descriptive than evaluating
Effective if needs of both Sender and Receiver are taken under considerations
Given at a time, when Receiver appears to be ready to accept it (solicitation
better than imposition)
Concerns not all possible differences, but singular items, about which Receiver
can do something instantly
Is verified with Receiver if perceived as intended by Sender
Build on trust and ethical (according to Sender internal Value System) approach
The self-esteem and self-protection of Feedback Receiver triggers several
defense mechanisms (blockers), which may be triggered by the behavior of the
Feedback giving person: Evaluating, attempt to control, implied superiority, cer-
tainty, hidden strategy, detachment (Barbour 2003). The chances, that feedback will
be accepted by the Receiver increase substantially, when Sender uses the I form.
It stresses the personal relation of Sender to the subject and personal perspective.
One tends rather to do someone a favour than contribute for an anonymous society.
In case of feedback blocker a simple Have I missed something? allow the
interlocutor to share his fears. The basic techniques of feedback are given in the
following sections.
02:40 Templates 359
Paraphrase
Praphrase (greek Para close to, nearby, phrasen to speak, to talk) is a restate-
ment of understood meaning of the received verbal message in another form, in
most cases in own words.
Paraphrase serves the clarification and does contain neither interpretation nor
conclusion of the Receiver. It is helpful, when we are uncertain, if the message is
correctly understood, want to underline some items or focus the conversation.
Typical Paraphrases begin with:
If I well understand you. . .
Did you said, that. . ..
Mirroring (Verifying own Perception)

In mirroring (Jarmakowski 2008) we subsume all conscious and unconscious
messages received from the Sender and describe to him, how do we perceive his
emotions and feelings. It is useful, when we have the feeling, that Sender is unaware
that our perception of the unconsciously transmitted emotions and feelings deviate
form his consciously expressed intentions. By mirroring we signal to the Sender,
that his emotions are important to us.
Typical Mirroring begins with:
Seems you are happy with that. . .
Am I right, that you it is not your day today. . ..
Verbalization of Emotions and Feelings

We verbalize the Receiver emotions when the problem is rather on Receiver
emotional side. Verbalization as feedback allows to verify emotions of both Sender
and Receiver (Diagonescu 2010). It contributes effectively to the recovery from
emotions and return to the feedback ground principles (Zech et al. 2004).
Typical Verbalization of emotions begins with:
I like this solution and dont understand why you do not. . .
02:40 Templates
The efficient communication depends on successful identification of Sender and

Receiver most relevant to the analyzed person. In the example below the
relationships of Project Manager (Level 0) to his direct Superior (Level 1
according to the project organization set in 08:00) and to his direct subordinates
(Level 1) are thoroughly analyzed. All MBTI and Belbin primary and secondary
roles are analyzed and the feasibility of cooperation between the Project Manager
and the role owner is evaluated in column Coo?. Preferred medium type (phone,
mail, meeting) are extended with preferred time of interaction. Preferred phrases
follows the MBTI/Belbin Types identification, Particularities in communication are
noted in column Special Table 17.4.
Table 17.4 Example

Date
Communication network assessment Project phase
Role Owner MBTI Belbin Preferred Preferred
Level name medium phrases Specials
Type Coo? Type Coo? Type Time
1 Direct
Superior
0 Project
Manager
1 Subordinate
1
1 Subordinate
2
1 Subordinate
Table 17.5 Example

Communication concept
1. Aim of the document
2. Communication approach vision and mission
3. Communication target receivers
4. Receiver
4.1. Responsible sender
4.2. Communication media, channel, receiver environment
4.3. Message content demanded
4.4. Time schedule
4.5. Budget
4.6. Control unit
The resources in project are limited. The optimal allocation of financial and
personal resources calls for conceptual approach. Possible result may be elaborated
in the Table 17.5:
02:50 Activities and Deliverables of Particular Project Phases

Tasks
Identification and optimization of communication in Core Team
Communication trainings of core team
02:50 Activities and Deliverables of Particular Project Phases 361
Results
Core team trained in communication methods and techniques
Preliminary Communication Channels in Core Team Set

Tasks
Evaluation and adjustment of all team members communication preferences
along the project organization relations
Elaboration of the communication concept
Communication trainings suggestions to HRM
Fulfillment of the communication needs according to the concept
Setting up of the communication performance surveillance
Evaluation and first conclusions of the project communication performance
Results
Communication concept elaborated and verified
Team organization optimized for best communication
Team trained in communication method and techniques
Communication surveillance operational

Tasks
Communication in accordance to the concept
Evaluation of the communication efficiency
Evaluation of the communication performance
Carrying out trainings in order to eliminate the weak points of communication
Elaboration of organizational adjustment change requests
Communication concept review and adaptation
Results
All Recipient satisfied with project communication
Actualized communication concept
Team communication optimized
Team members deficiencies in communication eliminated
Communication evaluation conclusions available

Tasks
Communication focus on users, sponsors and relevant stakeholders optimized
Communication performed best feasible way
Closing evaluation of the communication efficiency

Closing evaluation of the communication performance
Results
The expectations of users, sponsors and relevant
Stakeholders fully met
Evaluation of the Communication in Project closedCommunication focus on
users, sponsors and relevant stakeholders optimized
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04:00 Self Management (Work & Life
Balance): SM 18
Quick Look
What Is It?
Project Manager has his own material and immaterial (cognitive and spiritual)
resources. Their balanced deployment decides about the efficiency of his own
actions and is conditioned by his intrinsic motivation, values and goals. Proper
management impacts his and others actions.
Who Does It?
Project manager himself has to take care about his own process, as it tangles his
personal inner values and motivation, crucial to the overall efficiency of his actions.
Project manager stays in focus of stakeholders and teams attention. His values are
scrutinized and decide about his actions. His motivation impacts his effectiveness
and is infectious to his team. His balanced spiritual and intellectual personality as
well as properly assigned deployment of material resources lends compulsory
credibility to his decisions.
What Are the Steps?
Verify and close pending process improvements and tasks. Periodically or upon
demand (from CM) review and adjust your values and goals. This along other
factors may impact your intrinsic motivation: build it up. Evaluate your strengths/
weaknesses, life attitude, emotional and cognitive perception and take corrective
actions if needed. Verify your time management, stress conditions, physical
abilities to do the job. Adjust where necessary. After verifying all roles check if
Change Request or Knowledge Management shall be addressed.
What Is the Work?
The developments of coherent personality, which act upon own values in convinc-
ing way is a challenge. Manager tends to skip self-reflection and serious personal
improvements be honest on this issue. As our values evolve over the years it is
difficult to change them so can the goals, motivation, and personal resources
balance be aligned with team and stakeholder expectations?

366 18 04:00 Self Management (Work & Life Balance): SM

Be honest with yourself and take time for self-reflection. Align your values with those
of your team and stakeholders. Be coherent. Act upon your personal conclusions.
Process
It makes sense also here first to revert to the outstanding issues. Change request, an
occurrence or periodical trigger (e.g. L-Timer 4:00) initiate your review of your
personal values, goals, intrinsic motivation, your personal intellectual capital and
material resources, which trigger appropriate action. If you consider it suitable
share your conclusions with others: through CM or KM Fig. 18.1.
04:10 The Goal of Self Management (Work & Life Balance)
The goal of self management is to increase satisfaction from work and daily life
through a skilled management of ones own personality and resources taking under
considerations own weak and strong points, their usage and steering their development.
04:20 Methods
Self Management is not considered by the ISO 21500:2012 (ISO 21500:2012 2012).
In contrast, a profound impact, the personality has on the project fate, remain the
vastly underestimated success factor. This Chapter is dedicated to this important issue.
04:21 Personality Entities Interrelation Chain
Definition of Personality
Following Ryckman, personality is a dynamic and organized set of characteristics
possessed by a person, that uniquely influences his or her cognitions, motivations and
behaviours in various situations (Ryckman 2008). We take the parsimonious
approach and build the hypothesis about the direct impact of personality entities as
shown in Fig. 18.2. The goal-action theory of Heckhausen and Kuhl (Heckhausen and
Kuhl 1985) considerations place goals in the center and sees values only through their
attachment to the goals (wishes) and not as absolute, original incentives. Wishes
translated into wants and intentions are enhanced by motivation in our model. The
abilities are split in immaterial resources deployment (cognitive and spiritual abilities
and attitudes) and physical resources: aptitudes and time. Support to this approach is
given by Banduras innovative agentic view on human social behavior: human as an
agent intentionally makes things happen by ones actions (Bandura 2001). Banduras
agencies comprise all personality entities presented bellow.
Each of the impacted entities feedback to the impacting entity what may lead to
changes in the impacting entity (e.g. we adapt our goals depending on our motiva-
tion build-up process). Beside that direct impact, there is also certain indirect
04:20 Methods 367
CM,
04:00 coincidental occurences
Pending process
improvements
and tasks
Review your personal System of Personal

values Values Procedure
see 04:22
Review your personal Personal Goals

goals Procedure
see 04:23
Review your intrinsic Intrinsic motivation

motivation Procedure
see 04:24
Review your personal Immaterial resources

immaterial resources Procedure
see 04:25
Review your personal Material resources

material resources Procedure,
Timesee 04:26
Any Yes
change CM
necessary?
No
Wish to share Yes

lessons learned? KM
No
Fig. 18.1 Self-Management (Work&Life Balance) process
impact e.g. of value system on immaterial resources deployment or actions

(Rokeach 1973). However, this may be included in the motivation build-up process,
thus simplifying the interrelations. Author is aware about still outstanding proof of
this hypothesis, yet for its consistency it will be further evaluated in this chapter.
04:22 System of Personal Values
Personal Values
Values determine ones ethics; this if congruent with the environment, defines the
moral of the individual (Chap. 14, 20:00 Human Resource Management: HRM,
Fig. 18.2 Personality

entities interrelation chain
Values
Direct impact Feedback
Goals
Motivation
Im-
material
Resources
Deploy-
ment
Material
Resources
Deploy-
ment
Activity
section 20:23 Recruitment and Evaluation). A value in this book is viewed as an

enduring belief that a specific mode of conduct or end-state of existence is person-
ally or socially preferable to an opposite or converse mode of conduct or end-state
of existence (Rockeach 1973).
Rokeach Value Survey

Rokeach Value Survey (RVS) distinguishes two types of values:
18+/2 Terminal values are self-sufficient end-states of existence that a person
strives to achieve (e.g. a comfortable life, wisdom). Pursued for their own sake.
36 Instrumental values, out of them 18 most important are modes of behavior.
Examples are ambitious (hard-working, aspiring) or honest (sincere, truth-
ful). Rokeach suggests that instrumental values help achieve terminal values.
Value System
This vast number of values calls for certain order, experimented also by Rokeach
[ditto] and others (e.g. Schwartz (Schwartz 1992); Hofstede and Hofstede (Hofstede
and Hofstede 2005) Rokeach defines this order as a value system, which is an
04:20 Methods 369
enduring organization of beliefs concerning preferable modes of conduct or end-

states of existence along a continuum of relative importance.
A clearly structured personal value system helps to decide in the midst of
uncertainty an immanent feature of each project.
Integral Humanism
In choosing individual value system, the ideals of integral humanism initiated by
Allport (Allport 1955) and Rogers (Rogers 1961/1995) appeal particularly relevant.
Rogers prises the self-actuation: an individual acting freely, without external
restrictions along his own ideals, beliefs, dreams, does his best. This attitude is
the most desired in projects. Max Scheler (Scheler 1994) classified the Rokeach
terminal and instrumental values into five hierarchical categories: hedonistic (low-
est), utilitarian, vital, spiritual and absolute (highest). Hauser (Hauser 2004) and
Batson (Batson et al. 1993) support the Allport concepts, that there is positive
interrelationship between the intrinsic religiousness (absolute level of Scheler) and
mental health further positive contribution towards successful self-management.
Charta of Ethics
Most business ethics tangle level three: e.g. EU or PMI Charta of Ethics (EU 2013;
PMI 2013), leaving the upper two categories to personal development of the
individual. The highly diverging individual value systems calls for a fundamental
reference point (Marianski 2007) allowing for team values integration, thus moral
behavior of its members. Shared (common values) proves to lead to higher perfor-
mance in organization, as compared to the organizations with differentiating, even
better net margin (Kouzes and Posner 2008). The absolute category of Scheler
(beliefs, supreme authorities) offers here an answer.
Integral humanism builds on three ethical principles, which again are beneficial
in project management (Chap. 17, 02:00 Communication Management: COM,
section 02:20 Methods):
Unconditional acceptance of second person: basic in successful team manage-
ment and communication
Unconditional and fully opened empathy
Authenticity in Interpersonal relation
04:23 Personal Goals
Integral personality, with clear value system and elaborated set of own ethical
principles, sets coherent and in case own ethics matches the moral of the
environment widely accepted goals. Sheldon and Elliot (Sheldon and Elliot
1998) proved, that the goals, which an individual set himself are have higher
predictability of being achieved as compared with inherited externally set targets.
Therefore, it is relevant for the balanced personality and balanced work & life to set
own well selected goals.
When the goals are well selected?
Personal Projects/Personal Goals Criteria

Few psychologists view our personality as cohesion of various personal projects
(Little 2007). Thus the goals shall fulfill the same SMART criteria we apply to the
project goals (Specific, Measurable, Attainable, Relevant and Time-bound, Chap. 2,
07:00 Planning & Scheduling: P & S, section 07:20 Methods). Beyond they
should be triple A:
Ambitious to lead your personal development
Adaptable the reality might demand changes
Awarding along a criterion chosen by the goal setting person.
Ambitious goals, according to Mone and Baker (Mone and Baker 1992), lead to
higher performance, when compared with easy or do-your-best goals. Ambiguous is
the adaptability of goals; on one hand they should be firm and with in certain
perspective sustainable, on the other hand the particularity of projects and our
personal life is a project, is the uncertainty, which may demand change of a course
(when e.g. major change in private life occurs). So is the adaptability to be seen as
conscious and well founded ability to adapt.
Awarding upon goal reaching is major factor contributing to the sustainable
motivation. Rohweder and Milusz (Rohweder and Milusz 2003) see awarding as
part of balanced happy life:
Each day do something which makes you happy,
Each day do something which significantly approaches you to the set goals,
Each day do something which will counterbalance the work performed (sport,
hobby, family, friends. . .).
The last is particularly relevant towards balanced life. The positive impact on
our psychological well-being, attitude towards work and family rewards in
increased performance and overall sense of harmony in life (Rantanen et al.
2011). That we shall balance our spiritual, emotional, intellectual life, based on
our values, goals, personal immaterial and material resources deployment, agree
meantime the psychology, business and science (e.g. Cobaugh and Schwerdtfeger
2005). The search of balance may lead us to the adverse, and not less ambitious
goals in aesthetic perspective feeling of beauty (Caproni 1997).
Ambitious goals, which mismatch own performance may lead to serious psy-
chological problems (Ward and Eisler 1987). Therefore, good evaluation of ones
own potential allows to place the goals in the right perspective.
The potential is given by strengths and opportunities, but is limited also by
weaknesses and threats. With the SWOT Analysis (see section 04:31 Assessing
Own Values hereafter) we can well estimate our potential and set reasonable yet
ambitious goals.
Coherence and Congruence of Goals

Sheldon and Kaiser (Sheldon and Kaiser 1995) proved that coherent and congruent
goals are prospective predictors of health, well-being, vitality and engagement.
They defined personal goals as coherent if they have mutual positive impact or
contribute to higher level goals and as congruent, if pursued consequently by an
individual.
04:20 Methods 371
Life goal
Periodical goal
Goal perspective
Annual goal
Quarterly goal
Monthly goal
Weekly goal
Daily goal
Time
Fig. 18.3 Goal perspectives (Rohwedder and Milszus 2003)
Well Selected Intrinsic Goals

Proximal goals have higher valence, potency and thus attainability as their expec-
tancy and instrumentality are higher (Snow and Jackson 1994). Thus well selected
intrinsic goals are:
Triple A SMART
Set in a hierarchy of lower level goals contributing to higher level goals (e.g.
attaining complex projects management some practice with simpler projects and
trainings in peoples management might be the intermediary lower level goals)
Structured and appropriately to SWOT instrumentalized into proximal and distal
goals (e.g. todays meeting success versus long term career plans, Fig. 18.3).
04:24 Intrinsic Motivation
Coherence and Congruence of Goals

Intrinsic motivation is an inner independent energy to engage in some actions with
the expectation about future outcomes, rewarding to the organism. Intrinsic moti-
vation is impacted positively by our wish to acquire competence and self-
determination, thus relates to direct fulfillment of our inner needs combined
theories, (Deci and Ryan 1985). The enjoyment and excitement, experienced at
competent and autonomous acting are the rewards for the intrinsically motivated
behavior. This brings upfront the choice theory of Glasser (1998) stating that all our
behaviors are purposeful. Not necessary reasonable or appropriate as seen by
others, but in one or other way rewarding to us.
Intrinsic Motivation Criteria

We build-up intrinsic motivation by evaluating our goals, attributed with our
values, along the following five inner need (Erwin 2004) :
Survival and security
Love and belonging
Emotions Personal Values, Personal Goals & Personality Traits

& Intrinsic
Motivation
External Final
Mental Decision Decision Execution
Information Control &
Model Preparation taking Tracing
Own Closing
Experiences
Fig. 18.4 Personal immaterial resources in decision process
Power and purpose

Freedom and novelty
Fun
If we manage to align our distal and proximal goals fulfilling possibly all of the
above needs with attainable results our intrinsic motivation increases.
Project managers enjoy usually higher degree of autonomy. This facilitates the
self determination and positively influences the intrinsic motivation (Enzle et al.
1996).
There is widely proven extrinsic motivation impact on intrinsic one (a.o. Ryan
and Deci 2000; Beswick 2013). The extrinsic project manager motivating factors
inventory is presented further in Chap. 19, 06:00 Leadership: L, section 06:20
Methods.
In this chapter, dedicated to Self-Management, purposely only uncontrolled,
personal motivation is considered as a facilitator of personal goals implementation.
These start with the immaterial resources.
04:25 Personal Immaterial Resources
Decision Making Process

Personal immaterial resources are resources used in cognitive process of decision
making (see Fig. 18.4) and in our social attitude. Key in decision making is mental
model of various situations developed in our mind. This model bases on our own
experiences, includes the external information and is conditioned by our emotions
and intrinsic motivation.
Direct impacts on mental model take our value system, goals and personal traits,
which also influence the following steps in decision making.
Mental Model
Mental model depicts situations learned or trained with certain similarity to the
current situation of decision maker and has the following attributes:
Relevance (given by similarity)
Confidence
Richness
The richer and more relevant the mental models are, the higher is our confidence
in decision taking, lowering the risks and improving the quality of the decision.
04:20 Methods 373
Education Training
Situation
Familiarity
Decision Speed
Response Mental Model

Speed Relevance Understanding
Risk Taking Decision Style

Mental Model
Confidence
Ambiguity
Tolerance Awareness
Mental Model Problem

Conformity Richness Solving Style
Fig. 18.5 Mental models interrelationships
The complete interrelationships are given in Fig. 18.5 (NATO RTO Technical
Report TR-SAS-050 2007). As projects by definition vary from each other, there
is possibility to develop perfectly matching mental model. We can develop rich and
relevant partial models (e.g. earned values analysis) and enter with them the
decision preparation.
The decision preparation features the Banduras intentionality (result of values,
goals and motivation) and forethought (mental model reference and expectancy)
(Bandura 2001).
Decision Making Capabilities

Decision making demands our capabilities to:
Analyse
Synthesize
Critically to evaluate
The development of those capabilities, often called critical thinking (a.o. King
2005/2013) is essential in project management. Due to the individual nature and
unpredicted occurrences (Banduras fortuity) right project decision demands thor-
ough situation analysis, on the spot synthesis with the past, with the environment
and with forethoughts and finally critical evaluation of possible outcome and risks.
Moral standards, based on personal values and ethics, exert here a regulatory
influence (Bandura 2001).
The execution tracing (Banduras self-reactiveness) and final control and closing
(Banduras self-reflectiveness) build up the utmost capability of project manager to
reflect and critically review the results of the taken decision and shaping appropri-
ately own experiences feeding back to the mental model adaptations.
Fig. 18.6 Corralogram of I am ok you are ok attitude. (*) Life positions (Psyquo 2013)
The feed-backing is also a part of NLP: Neuro-Linguistic Programming (Tossey

and Mathison 2003). The cognitive associations in our mind are expressed as
linguistic chains. We are encouraged to adapt our behavior (feedback) until we
obtain the expected results (intentionality predicate). In NLP mental model is
immediately deployed and so long modified until final results are reached. Although
it sounds simple, its application and practical deployment proved difficult and
subject to some criticism (Einspruch and Formann 1985). Therefore, this concept is
not further pursued in this book.
Our attitude exerts influence on the development of our personality as well as on
the effectiveness of the decision taken.
Thomas Harris (Harris 1967) formulated Eric Berne four types of attitudes,
based on combination of positive/negative attitude towards self and others. Most
desired for the project manager is the attitude /: I am ok. You are ok. This
constructive and indulgent attitude:
Gives up comparisons,
Treats others openly and with respect,
Consider others as important as we are,
Criticizes in a constructive, not humiliating way,
Is the attitude of a winner.
Franklin Ernst expressed Bernes attitudes into the so called OK Corral. Ernst
arguments, that in our daily behavior we move between all attitudes (Ernst 1971).
By scaling the dimensions we may express our personal energy distribution in form
of corralograms (see Fig. 18.6).
04:20 Methods 375
On the Ernst Corralogram we superseded the life positions (Psyquo 2013). The
lines express our orientation toward specific position. The dark quadrate is the
average life position we take. The individual in the example in Fig. 18.6 behave in a
positive, well-balanced way, with a positive attitude towards others and good
impact on the environment, is problem solving oriented, accept common rules, is
tempered in face of emotions busts with a good sense of humour. Life position most
welcome for project managers, who care about success in their professional and
private life.
The OKness/Not-OKness can not be explored under the idiographic (specific
cases and unique traits or functioning of individuals (Turvey 2008)) and phenome-
nological (private way of thinking, not necessary related to objective reality
(Lazarus and Folkman 1984)) aspects (Boholst 2002). Boholst identified the two
factors I and You as dominating over the underlying OK/Not OK. The scale,
used as in the example in Fig. 18.6 is relative and has to be calibrated with a
possibly vast sample. Therefore, taking the tests of ones own life position it is
advisable to learn the calibration base of the test itself.
We summarize this chapter as follows:
Balanced self management in immaterial resources focuses on improvements in
mental models, critical thinking, moral standards and cooperative I am OK, you
are OK attitude.
04:26 Personal Material Resources, Time
Decision Making Process

The personal material resources at our disposal include our physical constitution
and condition, deployed over time.
The material resources are as individual as personal immaterial ones (Forsyth
2007; Brugge 2011). Good balanced physical condition is relevant to the overall
balanced work & life. Tired (overworked) team member is rather prone to errors;
stressed manager will more likely react adversely to reasonable proposals. With
SWOT analysis we can identify if our physical abilities and skills match current job
demand and take suitable individual action.
Special attention is given here to the time. Although time is needed while
considering the values, goals or in the cognition processes, we view it as bound
with material resources. In each activity, including the intellectual one, the humans
material resources are engaged. If we consider e.g. project organization than at least
part of our brain is occupied. When we temporarily focused on our spiritual merits,
we might not be able to do anything else. Therefore, time is bound with our material
resources and its use impacts our balance.
Time is the most invariable of all of our resources; time can not be stopped and
its pace is constant (Rohwedder and Milszus 2003).
Human life amounts to about 700000 h. Most of us have 200000 h behind, few
even more. The question arises: do we use our time efficiently. . .? The team looks
up at the project manager his own time management is an indicator of his

capabilities in project management.
Numerous authors provide recipes for successful time management, just to name
the few newest only (Brugge 2011; Alexander and Dobson 2009; Forsyth 2007;
Mancini 2007). Common in all approach of all authors, including the non-
conformist Ralph Brugge are two aspects:
The analysis of the current time management and
Person oriented approach.
Varying are the proposed measures.
The synthesis, practiced since several years in several cultures by the author,
comprises:
1. Analysis of current time use
Analysis of the daily practice
Identification of the time thieves
Evaluation of the stress potential
2. Identification of improvement potential
Classification of the activities according to own priorities
Identification of the distribution of the own physiological performance over
the 24 h
Personal work and life balance definition
Selection and adjustment of the activity/time slot
Drop-out of selected activities
3. Personal optimization contract
Fixing of own goals and priorities
Fixing of necessary actions and deadlines
Optimal time/activity allocation during the day
Setting control points
The analysis of our daily practice let us to identify the potential in time
deployment optimization. There are three dimensions of the analysis:
(a) What are our current priorities?
(b) Where do we have social obligations, which are not easy to change?
(c) The 10 % deficiencies (Rohwedder and Milszus 2003)
Suitable techniques are presented in section 04:36 Unsatisfactory 10% Rule.
Time thieves are imposed activities, which do not contribute to our goals, yet
steal our time: drops for a chat by superior, sales phone calls, irrelevant urgencies.
The last not least analysis item is stress potential. Stress is a non-specific reaction
of our body to internal or external conditions which mobilize our body to additional
effort: Heart rate, breathing rate, muscle tension, metabolism and blood pressure all
increase (Davis 2008). Stress is subjective, i.e. each of us reacts differently to
different stressors. Stress appraisal distinguishes three phases: Challenge Threat
Harm/Loss (Lazarus and Folkman 1984). Figure 18.7 shows stress appraisal in
terms of our performance versus load relationship.
Slightly increased stress, mostly from higher load, under normal circumstances
influences positively our efficiency up to the point, where tiredness takes upper
hand. We reach our highest performance. The Exhaustion which starts with each
Efficiency/productivity
Highest
Efficiency/productivity
Tiredness
.Exhaustion
Sickness
Pressure
...Psychical Collapse
Here Starts... Charge
Fig. 18.7 Stress effect on our efficiency and productivity (Knoblauch 1991)
additional load stressors decreases our performance down to the point of sickness
point of no return. Burn-out, psychical collapse and several months in therapy are
the consequences. Certain resistance provides here a clear value system. Creswell
et al. (Creswell et al. 2005) proved that self-affirmation of values has positive
impact on stress resistance.
Stress symptoms and sources are described in section 04:39 Stress Syndromes
and Stressors.
04:31 Assessing Own Values
The Rokeach Value Survey

In the evaluation of personal value systems majority of inventories base on Rokeach
Value Survey (RVS), introduced above in section 04:22 System of Personal
Values. By setting the exact sequence, which are the most relevant values and
which are less, we achieve guidance for evaluating our goals. Examples of RVS
terminal and instrumental values are given in Tables 18.1 and 18.2 respectively.
04:32 Evaluating Own Goals
Goal Evaluation Criteria

The goals, in trace of Emmons and Kaiser (Emmons and Kaiser 1996), can be
evaluated in four perspectives:
Financial benefits:
Indicates direct incomes from reaching this goal
Table 18.1 Rokeach value survey terminal values (Rokeach 1973)

Terminal values
No Criterion Description
1 A comfortable life A prosperous life
2 Equality Brotherhood and equal opportunity for all
3 An exciting life A stimulating, active life
4 Family security Taking care of loved ones
5 Freedom Independence and free choice
6 Health Physical and mental well-being
7 Inner harmony Freedom from inner conflict
8 Mature love Sexual and spiritual intimacy
9 National security Protection from attack
10 Pleasure An enjoyable, leisurely life
11 Salvation Saved; eternal life
12 Self-respect Self-esteem
13 A sense of accomplishment A lasting contribution
14 Social recognition Respect and admiration
15 True friendship Close companionship
16 Wisdom A mature understanding of life
17 A world at peace A world free of war and conflict
18 A world of beauty Beauty of nature and the arts
Emotions/feelings:
Indicates how exciting is to reach this goal
Impact:
Indicates to which extend is this goal instrumental, supporting to reach the other
goals
Attainability:
Indicates the chances to reach the goal and its unique or permanent opportunity
character.
The resulting exemplary evaluations are depicted in Fig. 18.8.
Goal 1 provides high emotions and is attainable; goal 2 is purely financially
oriented with certain probability of attainability. Goal 3, highly attainable, is
supportive to other goals.
04:33 Assessment of Own Intrinsic Motivation
Intrinsic Motivation Inventory

Ryan and his colleagues from the University of Rochester developed the Intrinsic
Motivation Inventory (IMI) to measure subjective experience related to target
activity (Ryan 2013).
All questions are to be answered with values RV between 1 (not at all) to 7 (very
much). The questions marked with (R) are reverse: the score value is the difference
Table 18.2 Rokeach value survey instrumental values (Rokeach 1973)

Instrumental values
No Criterion Description
1 Ambitious Hardworking and aspiring
2 Broad-minded Open-minded
3 Capable Competent; effective
4 Clean Neat and tidy
5 Courageous Standing up for your beliefs
6 Forgiving Willing to pardon others
7 Helpful Working for the welfare of others
8 Honest Sincere and truthful
9 Imaginative Daring and creative
10 Independent Self-reliant; self-sufficient
11 Intellectual Intelligent and reflective
12 Logical Consistent; rational
13 Loving Affectionate and tender
14 Loyal Faithful to friends or the group
15 Obedient Dutiful; respectful
16 Polite Courteous and well-mannered
17 Responsible Dependable and reliable
18 Self-controlled Restrained; self-disciplined
Fig. 18.8 Goal evaluation
between the answer RV deduced from value 8. The total score is relative you may
set the threshold level to assess the level of intrinsic motivation. Tables 18.3
through 18.9 contain the variables (factors) of Ryans IMI.
04:34 Assessment of Personal Psychical Energy Focus
There are three best known assessments instruments to assess the focus of personal
energy, determining our attitude towards life and towards others.
Table 18.3 Ryan IMI: interest/enjoyment (Ryan 2013)

No Interest/Enjoyment variables (factor) Response value RV 17 Score
1 I enjoyed doing this activity very much RV1 RV1
2 This activity was fun to do RV2 RV2
3 I thought this was a boring activity (R) RV3 8 RV3
4 This activity did not hold my attention at RV4 8 RV4
al (R)
5 I would describe this activity as very RV5 RV5
interesting
6 I thought this activity was quite enjoyable RV6 RV6
7 While I was doing this activity, I was RV7 RV7
thinking about how much I enjoyed it
Total Score Interest/Enjoyment RV1-7
Table 18.4 Ryan IMI: perceived competence (Ryan 2013)

No Perceived competence variables (factor) Response value RV 17 Score
1 I think I am pretty good at this activity RV1 RV1
2 I think I did pretty well at this activity, RV2 RV2
compared to others
3 After working at this activity for awhile, I RV3 RV3
felt pretty competent
4 I am satisfied with my performance at this RV4 RV4
task
5 I was pretty skilled at this activity RV5 RV5
6 This was an activity that I couldnt do very RV6 8 RV6
well (R)
Total score perceived competence RV16
Table 18.5 Ryan IMI: effort/importance (Ryan 2013)

No Effort/Importance variables (factor) Response value RV 17 Score
1 I put a lot of effort into this RV1 RV1
2 I didnt try very hard to do well at this activity (R) RV2 8 RV2
3 I tried very hard on this activity RV3 RV3
4 It was important to me to do well at this task RV4 RV4
5 I didnt put much energy into this (R) RV5 8 RV5
Total score effort/importance RV15
Life Position Test

Positions our psychical energy within the two dimensions: I am OK/I am not OK
and you are OK/you are not OK and may be depicted on corralogram as shown in
section 04:25 Personal Immaterial Resources above. Fig. 18.9 shows an example
result of test taken with Psyquo (Psyquo 2013). Blue pointer is the relative orienta-
tion, purple star the mean life positioning.
Table 18.6 Ryan IMI: pressure/tension (Ryan 2013)

No Pressure/Tension variables (factor) Response value RV 17 Score
1 I did not feel nervous at all while doing this (R) RV1 8 RV1
2 I felt very tense while doing this activity RV2 RV2
3 I was very relaxed in doing these (R) RV3 8 RV3
4 I was anxious while working on this task RV4 RV4
5 I felt pressured while doing these RV5 RV5
Total Score Pressure/Tension RV15
Table 18.7 Value/usefulness (Ryan 2013)

No Perceived choice variables (factor) Response value RV 17 Score
1 I believe I had some choice about doing this activity RV1 RV1
2 I felt like it was not my own choice to do this task (R) RV2 8 RV2
3 I didnt really have a choice about doing this task (R) RV3 8 RV3
4 I felt like I had to do this (R) RV4 8 RV4
5 I did this activity because I had no choice (R) RV5 8 RV5
6 I did this activity because I wanted to RV6 RV6
7 I did this activity because I had to (R) RV7 8 RV7
Total Score Perceived Choice RV17
Table 18.8 Ryan IMI: relatedness (Ryan 2013)

Response value
No Relatedness variables (factor) RV 17 Score
1 I felt really distant to this person (R) RV1 8 RV1
2 I really doubt that this person and I would ever be friends (R) RV2 8 RV2
3 I felt like I could really trust this person RV3 RV3
4 Id like a chance to interact with this person more often RV4 RV4
5 Id really prefer not to interact with this person in the future RV5 8 RV5
(R)
6 I dont feel like I could really trust this person (R) RV6 8 RV6
7 It is likely that this person and I could become friends if we RV7 RV7
interacted a lot
8 I feel close to this person RV8 RV8
Total Score Relatedness RV18
Egogram
According to Dusey an individual allocate his time and psychical energy in varying
grade to the Ego states in Bernes model of Transactional Analysis(see Chap. 17,
02:00 Communication Management: COM, section 02:22 Dynamic Model of
Transaction Analysis) (Dusay 1977). The Adult State is spilt in two: Critical
Parent (CP) and Supportive Parent (SP) and the Child state into Natural Child
(NC) and Adaptive Child (AC). A questionnaire of 143 questions helps to position
our energy and time focus.
Table 18.9 SWOT success/failure balance (Rohwedder and Milszus 2003)

My most important successes, How have I achieved them? Which abilities were necessary to
achievements achieve them?
1.
2.
3.
4.
....
My biggest failures Which abilities were missing How have I coped with the
in this case failure?
1.
2.
3.
4.
...
Positiv vision
of the others
Helpless Cooperative
attitiude attitude
ttitu
Your life
positioning
Under-
esti-
Positiv
mation Harmony
vision
of
Nihilistic
c Authoritarian yourself
attitude attitude
Depression Overestimation
Fig. 18.9 Example life position test results (Psyquo 2013)
Figure 18.10 (transparent frontline yellow pillars) shows an exemplary test taken
with Patrick Wagner tests (Wagner 2013).
Heinzel analysed 4,000 German managers. The median is shown in Fig-
ure 04:0010 in lined columns (Heinzel 2007). The highest pillar depicts the
state, along which an individual will most likely act in stress situations. Deviation
of +/15 from standard area shows extremes, which may have dominant negative
impact on a interpersonal transaction.
100
Critical area
80
Standard area
60
40
Development area
20
00
CP SE A NC AC
Critical Supportive Adult Natural Addaptive
Parent Parent Child Child
Fig. 18.10 Example egogram test results
Energogram amplifies the different positive and negative characteristics of the

five Ego states. Example of test results taken with Psyquo (Psyquo 2013) are
given in Fig. 18.11 below.
04:35 SWOT Analysis
Our chances to set the right goals increases if we deploy our strengths (S) and
take advantage of the opportunities (O), The weaknesses (W) rise the risk
whereas the threats (T) are the goal prohibiting factors. Figure 18.12 depicts the
SWOT example (Furugori 2013).
The analysis of the strengths and weaknesses shall be performed periodically.
Honest and firm answers to the questions, which refer to the particular profiles in
SWOT helps to position an individual. Positive and negative polarization easies the
positioning (Rohwedder and Milszus 2003):
What am I willing to do?
What do I perform well?
What do other people appreciate in me?
Questions concerning negative options can also be helpful:
What am I not particularly willing to do?
What am I bad at?
Where did the conflicts appear?
SWOT in Form of a Success and Failure Balance

Critical in SWOT is the choice of criteria: different in the example above and
different in the questions of Rohwedder and Milnusz. They should be formulated in
alignment to the selected personal goals.
Negative Aspects of the dimensions Positive Aspects of the dimensions

Strong Weak Weak Strong
10 1 1 10
Persecutor Parent Critical Parent

Parent
Rescuer Parent Supportive Parent
Medium values
High values
Low values
Median in the
population
Adult
Adult
Measured level
Critical Child Natural Child

Child
Compliant Child Adaptive Child
Your Energogram
Fig. 18.11 Example energogram test results (Psyquo 2013)
SWOT may by also performed by a balance of ones successes and failures as

shown in Table 18.9 (Rohwedder and Milszus 2003):
Feedback Opinion
The third form of SWOT Analysis is the honest and comprehensive feedback by
someone we trust and who knows sufficiently our values, goals and daily life. It
may be coach, may be a friend or relative. The rules of PACTAR (00:32) and
feedback (00:33), presented in Chap. 16, 00:00 Conflict Management: CFM, might
be helpful here, too.
Strengths Weaknesses
Personality strengths Personality weaknesses
Creative Sceptical
Objective thinker Stubborn
Realistic Unfocused
Charismatic Apprehensive in new situations
Persuasive Difficulty seeing the big picture
Intern
Experience Lack of Experience
Being a leader Work experience (1 summer job)
Social awareness 3rd world Life experience 18 years old
Application of certain skills Application of certain skills

Visual arts (e.g. film, models) Applying the scientific methods
Working with people Working with numbers
Computer technology
Opportunities Threats
Personal Personal
Getting involved with teams MyselfAllowing me to convince
and clubs (e.g. theatre, improv, myself that I cannot do something,
film, ball hockey, track&field or that I cannot learn what i would
need to in order to do it
Education Education Extern

Degree from post - sec institution Distruction from studiesbeing
Leaving School with A - grades overly involved-not putting
school first
Career Work
At current employment room for Competitionthe market for
expansion of responsibilities, young and educated individuals
skill set and salary is very competitive
To take an advantage To circumvent
Fig. 18.12 SWOT analysis
04:36 Unsatisfactory 10 % Rule
Analysis of Activities and Time

Interesting technique of the evaluation, whether we use the time in the best way,
comes from Rohweder and Milnusz (Rohwedder and Milszus 2003):
Firstly the typical activities during the day shall be meticulously noted down, the
time of their beginning, their end and duration (see Table 18.10).
Next each activity shall be evaluated:
Was the given activity necessary?
If more than 10 % of activities turn out to be unnecessary, it means that the tasks
were badly assigned or their priority was wrongly set.
Was the time used to perform this activity appropriate?
If the time spent on activities exceeded 10 % of what we would estimate to be
appropriate, we should find the reasons and react properly. The causes can
Table 18.10 Social readjustment rating scale (Holmes and Rahe 1967)
Nr Event (Stressor) Value Your score
1 Death of spouse 100
2 Divorce 73
3 Marital separation 65
4 Detention in jail or other institution 63
5 Death of a close family member 63
6 Major personal injury or illness 53
7 Getting married 50
8 Being fired at work 47
9 Marital reconciliation with mate 45
10 Retirement from work 45
11 Major change in health of a family member 44
12 Pregnancy 40
13 Sexual difficulties 39
14 Gaining a new family member 39
15 Major business readjustment 39
16 Major change in financial state 38
17 Death of a close friend 37
18 Changing to a different line fo work 36
19 Major change in number of arguments with spouse 35
20 Taking out a loan or mortgage for a major purchase 31
21 Foreclosure of mortgage or loan 30
22 Major change in work responsibilities 29
23 A son or daughter leaving home for 29
24 Trouble with in-laws 29
25 Outstanding personal achievement 28
26 Spouse beginning or stopping work 26
27 Beginning or ceasing normal schooling 26
28 Major change in living conditions 25
29 Revision of personal habits (manners) 24
30 Trouble with boss 23
31 Major change in working conditions 20
32 Change in residence 20
33 Change to a new school 20
34 Major change in the type/amount of recreation 19
35 Major change in church activities 19
36 Major change in social activities 18
37 Taking out a loan for major appliance 17
38 Major change in sleeping habits 16
39 Major change in the no of family get-togethers 15
40 Major change in eating habits 15
41 Holiday 13
42 Christmas 12
43 Minor violation of the law (traffic ticket etc.) 11
include e.g. wrong assessment of time needed, the technique of working or self-
discipline.
Was the performance purposeful (goal oriented)?
If more than 10 % of performance was not in line with with our goals, we should
correct the planning process and organization.
Was the choice of deadline appropriate?
If the choice of the deadlines is in more than 10 % of cases wrong, we should
analyze again our planning and time assignment.
We extend this Unsatisfactory 10 % Rule with two other items which may occur
over the longer period: a week or a month:
Are there breaks in your planned schedule with negative impact?
If more than 10 % of overall time was lost due to the unscheduled and not
contributing to your goals events (Your superior drops for a chat, financial
department demands urgent clarification etc.) you should be more assertive in
declining them.
Are there time thieves in your planned schedule?
Time thieves are activities which do not contribute to our goals. If more than
10 % of overall time was devoted to those activities a change in behavior might
be advisable: decline, postpone, reduce the frequency of occurrence, stop it or
disappear.
Knoblach (Knoblauch 1991) attributes up to 28 % time losses due to breaks and
time thieves.
04:37 Setting the Priorities
The following approaches to priority setting are feasible:

1. Deciding upon the urgency and importance
2. Deciding upon the earned benefits
3. Deciding upon benefit/effort ratio
4. Deciding upon relevance/time availability
The first approach is attributed to president Dwight D. Eisenhower. He is
frequently quoted to have having said: What is important is seldom urgent and
what is urgent is seldom important, yet author could not identify the original
source (Badiru 2009; Rohwedder and Milszus 2003; Seiwert 2002). Due to the
popular identification of this approach as Eisenhower principle, it will be
denominated as such further in this book.
Eisenhower Principle
Eisenhower divided empty page into four areas (see Fig. 18.13) and allocated the
tasks depending on their urgency and importance:
Area A: Here are urgent and important tasks, which must be performed
immediately.
high
B A
Setting the deadline of tasks Immediate tasks execution
self-realization or dispatch to
importance of a task
execute
D C
Verification of the task Dispatch to execute,
necessity, realization if time perform in third priority if
low allows, dispatch time allows
recommended
less urgent very urgent

Urgency of a task
Fig. 18.13 Eisenhower task priority assignment principle
Area B: Here are important but not urgent tasks. A deadline for their perfor-
mance is set, and the tasks are duly executed or dispatched for the timely
execution.
Area C: Comprises the tasks of minor importance as compared to the tasks in
areas A and B, however urgent. These tasks shall be dispatched for execution by
someone else, sparing our time for the execution of important tasks in areas A
and B.
Area D: These are the tasks, which are neither important nor urgent. Their
execution shall be questioned. If they prove to have to be done, they should be
dispatched to somebody else. If it is possible to abandon them, we should give
them up and initialize the organizational provisions for the future to reduce the
occurrence of these area tasks.
The time allocated to perform the tasks in each area, bearing the individual goals
in mind, shall follow the priorities: the largest portion shall be dedicated to tasks in
area A, followed by the time allocated to area B and C. As less as possible time shall
be spent on tasks in area D.
Pareto Principle
The second approach is attributed to Vilfredo Pareto, who 1906 evaluated the
wealth distribution in Italy and concluded that 80 % of wealth in Italy belongs to
20 % of the people. It was however, pioneered around 1940 by American business
theorist Joseph Juran as the 80:20 rule of quality manufacturing (Tracy 2010). In the
automotive industry 20 % of car furnishing options deliver 80 % of turnover, while
the remaining options jointly secure 20 % only. So the criterion of setting the
priorities is the expected benefit. We start with the activity bringing the biggest win
and continue until the 20 % effort is reached. Anything beyond this value will most
likely contribute less, than the activities in the first group.
Benefits
65% - 80% 20% - 40% 5% - 15%
A B C
15% - 20% 20% - 40% 40% - 65%

Effort
Fig. 18.14 ABC priority assignment principle
ABC Principle
A derivate from the 80:20 Pareto principle is the ABC categorization. Here
1520 % efforts results in 7080 % gains (A-class). The remaining 80 % of efforts
is further split into two classes B and C. Class B efforts between 20 and 40 %
generates in most cases linear 2040 % win, whereas class C efforts of up to 65 %
may bring as less as 5 % (Oakland 2008). Figure 18.14 illustrates this case.
Relevance/Time Availability
Whichever way we choose to assign the priorities, thus determining the relevance
of an activity, the question remains, which absolute time effort we allocate to each
area, each class.
Project manager is frequently facing unexpected and has to cope with
unplanned, yet important or beneficial activities.
Based on present practice the following heuristics proved to be effective:
Plan first not more than 60 % of your time along the chosen priorities
Allow 20 % of reserve for unpredictable activities (buffer time)
Admin up to 20 % time for relevant yet unplanned activities.
04:38 Individual Diurnal Physiological Performance
Diurnal Physiological Performance

Human being diurnal physiological performance is controlled by two clocks: sleep
and wakefulness clock and physiological clock which regulates among others our
body temperature (Kroemer et al. 2010). Usually our routine circadian rhythm
matches both: increasing the temperature during the day time wakefulness and
reducing it during sleep. Confusion arises when we take e.g. night shift or night
flight into a different time zone the physiological performance varies. Those, who
150%
Performance/Efficiency
100%
50%
2 4 6 8 10 12 14 16 18 20 22
24 hours cycle
Fig. 18.15 Individual diurnal physiological performance
sleep 89 h perform the remaining 1516 h, while those with a 56 h sleep may
enjoy a nap in-between.
Our individual physiological performance varies; few of us has a monotonic
physiological performance, most of us has twin circadian performance peaks.
Knoblauch (1991) suggests to assess own daily physiological curve as a capability
to perform between 50 % of own average performance and 150 % in peak times (see
Fig. 18.15).
04:39 Stress Symptoms and Stressors
Social Readjustment Rating Scale SRRS

Based on profound research, Holmes and Rahe developed a scala of 43 stressful
events, given in Table 18.10, impacting the probability of illness (Holmes and Rahe
1967, quoted in Shumaker 2010). You may mark and copy the value of the
corresponding event into your score, if it occurred within the last 12 months.
Table 18.11 shows the probability of illness within the forthcoming 24 months
according to the statistics of Holmes and Rahe.
The results and relevance of the SRRS scale after 50 years of the civilization
development; new psychology and neuropsychiatry developments as well as new
technologies might demand some adjustment in SRRS. Kalin and Kung developed
04:40 Templates 391
Table 18.11 Probability of illness within the forthcoming 24 months (Holmes & Rahe)
Stress value Illness probability within the next 24 months
150199 37 % Chance
200299 51 % Chance
300 and higher 79 % Chance
their stress scala and pursued research in Switzerland in 20062007 (Kalin and
Kung 2008). Yet there is none of the tools as widely used and accepted as SRRS so
far. Therefore it is included here.
Smith (2008, page 13) considers the range of 4070 scored stress value points as
the optimal range to work.
They concede that reaching the range of 80100 points already may lead to
major repercussions, impacting our normal daily life and health.
04:40 Templates
Analysis of daily activities and time spent

In the exemplary template Table 18.12 (Rohwedder and Milszus 2003) the Activity
No. 1 is evaluated as unnecessary and at the wrong time done. So in the columns
Was it necessary? and Was it done at the right time? under No the Duration
of Activity No. 1 is noted. Activity No. 3 is considered as unnecessary and with
unjustified duration. Activity No. 2 was not done right. Consequently under No in
these two columns the Duration of Activity No. 3 is noted. For each necessary
activity done the right way at the right time and with justified duration put Y in
the corresponding column.
After all activities are evaluated, the Total in the columns Duration and No
is to be calculated. The relationships of Nos to the Total Duration time multiplied
by 100 % gives the value above or below the 10 % threshold.
Analysis of work breaks and time thefts
Another view on the time used gives the Table 18.13. An assessment helps to
identify the optimization potential (Rohwedder and Milszus 2003).
Analysis of own work attitude
The Table 18.14 with few examples of working styles might be helpful to assess
the consequences of our working style and the optimization potential there
(Rohwedder and Milszus 2003).
Project manager, who intend to improve his own performance through conscious
deployment of transactional analysis concept, value system definition and
activities/time analysis write a contract with himself.
The contract (see Table 18.15) shall include:
392
Table 18.12 Analysis of daily activities and time spent

Was the duration Was it done the right Was it done at the right
Was it necessary? justified? way? time?
No Activity Start End Duration Y No Y No Y No Y No
1 t1Start t1End tD1 t1End-t1Start TN1 tD1 TS1 tD1
2 t2Start t2End tD2 t2End-t2Start Y TR2 tD2
3 t3Start t3End tD3 t1End-t1Start TN3 tD3 TD3 tD3
18
... ... ... ... ...

i tiStart tiEnd tDi tiEnd-tiStart
... ... ... ... ...
Total v tDv v TNv v TDv v TRv v TSv
10 % threshold v TNv
______
v TDv
______
v TRv
______
v TSv
______
v Dv
t *100% v Dv
t *100% v Dv
t *100% v Dv
t *100%
04:00 Self Management (Work & Life Balance): SM
Table 18.13 Analysis of the causes of breaks at work

Person causing the Conclusion avoidance of a break minimalization of a
break or time theft break No possibility of break avoidance
Break/time theft
Break caused by: caused by other people Break/time theft caused by ourselves
Unplanned phone
conversation
Mail work-
through
Accidental
conversation
Visitor
Co-worker
Superior
Unpredictable
deadline
Inquiry
Deadlines
collision
Unscheduled
meeting
Unpredictable
work
...
Table 18.14 Analysis of ones own attitude to work

Negative impact
I Yes No Often Never Rarely
. . .prefer diversity of tasks
. . .set short deadlines
. . .can manage with the unexpected demands
. . .also deal with secondary issues
. . .subordinate the task to the goal
. . .tolerate deviation from the plan
. . .yield under the influence of priorities
...

Tasks
Identification of own values, goals, motivation, immaterial and material resources
Table 18.15 My personal contract

My personal contract
No. Content
1 General information, Date of actualization, Version
2 Aim of the document. . .
3 My 3 most important values. . .
4 My 3 key Triple-A SMART goals. . .
5 I would like to improve in my life. . .
6 To reach my goals and improve my life I can do. . .
7 Strengths and Opportunities supporting my intended activities. . .
8 My weaknesses, threats, prejudices, customs, patterns which are counterproductive in my
intended activities. . .
9 My Child-Ego personality characteristics, which are counterproductive in my intended
activities. . . (interesting activities, but not supporting my goals)
10 I may count on support of the following persons. . .
11 In pursuing my goals along the intended activities I might change. The changes which may be
noticed by others, are. . .
12 In case I encounter some obstacles, in particular by someone, I will. . .
13 In case I need help from others, I may do. . .
14 In case I will not manage to pursue this contract, I will. . .
15 The worst scenario, when I will not reach my goals, is. . .
16 In view of the above, reviewing my threats again, I feel, that. . .
17 In conclusion I decide to. . .
18 Finally, taking all above under considerations, I review and adapt my Triple-A SMART goals
(No. 4) as follows. . .
. . .. . .. . .. . .. . .. . . . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .
Date Signature
Results
Own values, goals set, motivation and immaterial and material resources identified

Tasks
Reevaluation of own Values and Goals
Reassessment of own motivation, immaterial and material resources
First approach to the identification of the needed activities
Elaboration of the Personal Contract
Setting of the verification points
Defining inputs for Change and Knowledge Management, where suitable
Results
Own values, goals set, motivation and immaterial and material resources verified
First list of needed activities
Bibliography 395
Personal Contract elaborated and signed

Input, if any, for Change and Knowledge Management submitted
Tasks
Time management
Evaluation of the results of the planned activities
Reassessment of own motivation, immaterial and material resources
Review and adaptation (if needed) of Personal Contract
Results
Al least few periodical analyses of own time management
At least one evaluation of the results of the planned activities
Reassessment of own motivation, immaterial and material resources done
Personal Contract reviewed and adapted if needed
Tasks
Concluding evaluation of the purposefulness of undertaken actions
Evaluation of time management results
Concluding evaluation of the Personal Contract
Formulation of lessons learned for future personal peruse
Results
Final conclusions on purposefulness of undertaken actions
Results of the evaluation of time management
Results of the evaluation of the Personal Contract realization
Personal lessons learned formulated
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06:00 Leadership: L
19
Quick Look
What Is It?
Project Manager is the one to deliver and he needs his team as he needs the
support of other stake-holders to reach it. Leadership is the way to get all on board
to pursue convincingly the common project goals.
Who Does It?
Project manager is the man in charge, yet in many cases other team members may
take lead, too.
Projects are unique and thus predestined for risk and uncertainty. All stake holders
and team members expect from project manager the competence and guidance
towards successful project termination and delivery. Project manager is an ampli-
fier of teams productivity: with positive, but in less successful cases negative
impact.
What Are the Steps?
Resolve pending issues first. Then proceed along LEAD: L for Launching the
Leadership: evaluating where is the project and who are the team members.
Elaborate the right leadership strategy; E for empowerment of the team; A
for acting by applying the right leadership style; and D for delivering: dealing
with the uncertainties and right decision taking. Check if Change Request or
Knowledge Management shall be addressed.
What Is the Work?
In holistic cybernetic view of leadership the relationship with team and
stakeholders determines the fate of the project and project leader. So major effort
is to identify the initial state and continuously to adapt the leadership style to the
current team members behaviour. Project manager has to be androgynously man-
ager and leader; he balances between linear and non-linear systems. Challenge is to
find the balance and despite all obstacles to deliver the results. Social responsibility
demands you to care about the leader qualities development of your team members.

400 19 06:00 Leadership: L

Be competent, profound and authentic. Do good job in creating the Big Picture and
successful leadership strategies. Be sensitive to people to win and engage them;
adjust your leadership style to their dynamic behaviour; develop your sense making
intelligence and take risk of intuitive decisions.
Process
The outstanding issues shall be treated first; at least periodically (e.g. L-Timer
6:00). Otherwise, your leadership process, which may be triggered by few other
processes, too, begins with launching activities, followed by team engagement,
active acting and warranting of the delivery. If you consider it suitable share your
experience with others: through CM or KM Fig. 19.1.
06:10 The Goal of Leadership
The goal of leadership is to create and mould the mutual relationship process with
all project stakeholders, team members in particular, towards project goals
accomplishment.
06:20 Methods
Leadership is not considered in the ISO 21500:2012 standard at all. Anonymously:

Someone should is in the process 4.3.18 stated as follows: This process should
enhance team motivation and performance (ISO 21500:2012 2012). Other issues
like aligning the team, taking care to deliver, leading through personality are not
treated at all. In view of the impact this issues have on the project fate, once again
the leading thought of the book an of this part from DeMarco and Listener is
nothing less than perfectly pinpointing the situation: the light is better there. . ..
(DeMarco and Listener 1999). Author takes care to move the search to where the
key had had been lost and summarize the suitable instruments for the project
manager in this chapter.
06:21 The Leadership Model
Most leadership theories view leadership as a unidirectional process of leaders

influencing socially their team members (e.g. Verma 1996; Fielder 2005; Avolio 2004).
Few recognize that it is rather a mutual dynamically evolving relationship and
leader has first to create the way to perform for the team, than win the team (dyadic
theories). Leader shall continuously adapt his behavior to the team development
and steer the project fate towards successful delivery of project results.
06:20 Methods 401
P&S, OM, EVM, PBM, CM,

06:00
BSC, HRM, TM, CFM
Pending process
improvements
and tasks
Launch Launch
your leadership see 06:22
Engage Engage the team

the team see 06:23
Act Act
to let team working see 06:24
Deliver Deliver
the project results see 06:25
Any Yes
change CM
necessary?
No
Yes
Wish to share
lessons learned? KM
No
Fig. 19.1 Leadership process
The situational/contingency theory of Fiedler positions the classical Task/Rela-

tionship behavioral combinations into the context of the situation (Fielder 2005;
Cragan et al. 2009). The situational leadership model of Hersey and Blanchard sets
(statically) the leadership style in relation to the team members development
level (Hersey et al. 2007). Few theories consider the dynamics of arising leaders
(role emergence theory) and the dynamical interrelationship between the leader and
the followers (Adair 2010); Implicit Leadership Theory (Hogg 2001).
Several behavioral theories demonstrate static perception of occurrences: Bass
transformational and transactional theories (Egan et al. 1995), functional theory of
Hackman & Walton, stylistic theory of White and Lippet, social style theory of
Blake & Mouton, X, Y later also Z theory of McGregor, power theory of French and
Raven (Cragan et al. 2009).
Fig. 19.2 Where Do We Come From? What Are We? Where Are We Going?, 189798. Paul
Gauguin. Museum of Fine Arts, Boston, Tompkins CollectionArthur Gordon Tompkins Fund.
Photograph # 2012 Museum of Fine Arts Boston
Functional theorists (Hackman and Walton 1986) view leader as servant to the
needs of team missing a notion of the purposefulness of the wholeness.
Promising, yet punctual, as in the case of functional theorists, is the Vroom-
Yetton Jago Normative Decision Model. Here several dynamic factors of team are
taken under considerations in developing the behavioral recommendations for the
leader (Vroom and Jago 1988).
Closest to contemporary leadership perception seems to be path-goal theory of
Robert House (House 1996). In this approach effective leader engage in behaviors
that are complimentary to the environmental and abilities conditions to compensate
for the deficiencies.
The cybernetic model developed further in this book bases on the holistic theory
(Best KC 2011/2013) which integrates the above theories with procedural (dynamic)
development stages of leadership, which in part, related to the communication, are
introduced by Cragan et al. (2009). In specific issues further theories like e.g. holistic
or power theories are further introduced.
The proposed four stages model of leadership LEAD resembles the four phases
of Rubicon project realization model (Chap. 2, 07:00 Planning & Scheduling: P & S,
section 07:20 Methods). We distinguish:
L Launch (Initialization of the project Leadership)
E Engage (Motivate and empower the project team)
A Act (Handle the daily leadership)
D Deliver (Assure the BSC balanced score results)
06:22 Launch
Leadership and Paul Gaugin

Methodical leadership is a prepared, conscious behavior. Inspired by Paul Gauguin
(see Fig. 19.2) canvas we shall answer the following questions:
Where do We Come From?
What Are We?
Where Are We Going?
06:20 Methods 403
Where do We Come From? comprises two areas:

Project goals and the context, in which project was set up. The correctness of
future, often instantly to be taken decisions, depends strongly on the profound,
correct knowledge about the project. The wholeness is mission critical (Redcliff
2009). Project manager has to engage himself in a profound intelligence gathering
to obtain the right data (Verma 1996).
Big Picture
The so called Big Picture, which comprises both the task content as well as an
organisational, technical, human and environmental context of the project, leads to
better understanding of the background of the project (Cragan et al. 2009). In
particular, project manager shall evaluate his team members (followers
characteristics) (House 1996; Cragan et al. 2009).
Five Base Powers

Next question is What Are We? Power theory of French and Raven distinguishes
five bases for power, which social agent (leader) can exercise towards individual
team members (French and Raven 2001):
Reward power (leader can mediate the rewards)
Coercive power (leader can mediate punishments)
Legitimate power (legitimacy to prescribe the behavior)
Referent power (social impact on team member)
Expert power (perception of leaders expertness)
Project manager, in most cases designated, enjoys a priori an authority of
legitimacy (Cragan et al. 2009). Team will expect his rewarding or coercive
power in the course of project life. A profound analysis of followers allows to
differentiate and to prepare both instruments individualized for optimal impact.
Project managers assigned by superiors are supposed to have a proven track of
records and sufficient knowledge to demonstrate also expert power in the project
area. The emerging leaders gain their expertise perception by relative knowledge
assessment by the followers (Cragan et al. 2009). Frequently these are ordinary
people, which placed in extraordinary situations enable their personal potential,
convincing others to follow (Munroe 1999).
Referent Power
Key to success is the referent power, preferred perception of leader by project team
members (Cragan et al. 2009).
Authenticity
Leadership is the social interaction between the leader and the followers. Lee call it
co-created space, relationship between the egos of those, who are involved (Lee and
Roberts 2010). To get engaged successfully leader has to be confident, dependable,
keep promises (Verma 1996) and authentic, i.e. represent intensions and
commitments with emotional genuity (Peterson and Seligman 2004). Authenticity
is unfortunately neither static, nor a final state: as it is subjective to social
Table 19.1 The roles of project manager and leader according to Verma (Verma 1996)
Project management Project leadership
Planning and budgeting Setting vision and direction
Organizing team Inspiring team work
Staffing the roles Aligning the team members
Controlling the results Motivating and supporting
Table 19.2 Focus of the project manager versus leaders focus adapted from Verma contribution
(Verma 1996)
Manager focuses on: Leader focuses on:
Objectives Vision
Choosing predefined way Searching the right way
Doing the things right Doing the right things
Shorter range Longer range
Procedures Policy
Administration Goal driven handling
Rules conforming Rules challenging
Maintaining and restoring Developing
Organization and structure People
Autocracy Democracy
Telling how and when Selling what and why
Controlling Directing
Restricting Enabling
Restraining, foreseeing Creativity and Innovation
Imitating Originating
Consistency Flexibility
Risks to avoid Risks as opportunity
Bottom line Top line
interaction it is a continuous and dynamic pursuit challenging the leader to

recognize the changes. This leads to the social authenticity: behavior true to the
needs of the situation, attuned to others, to the context and impact, project manager
is likely to make on his team members (Lee and Roberts 2010). Positive impact of
the authenticity on the team members work behaviour and engagement has been
proved by Walumbwa et al. (2010).
The authentic leader is dedicated to the project goals and fulfills his mission with
passion (Nash 2004). Therefore, more prevalent transformational leadership offers
more opportunity to develop this attitude, that rather transactional in nature man-
agement profile of project manager (Egan et al. 1995). In Wong taxonomy
managers are guardians, leaders are idealists and artisans (Wong 2007).
Project manager, Wong rational type, has to be androgynously manager and
leader. Each of these profiles has different role (see Table 19.1) and thus different
focus (see Table 19.2).
As the personal traits influence our behaviour (Chap. 18, 04:00 Self-
Management: SM, section 04:20 Methods) project manager can only to
06:20 Methods 405
certain degree control his perceived authenticity, dedication and passion. The respon-
sibility for his appearance lays with the role owner designators: choosing the right
personality for the given project type. The innovative exploring projects might rather
need leader type management, whilst building construction might be advisable to
entrust the management type person. This may occur also during project lifecycle:
leadership is prevailing in the initialisation and planning, whilst manager is sought in
the realisation and finalizing (Verma 1996).
Bennis aptly pointed: The manager does things right; the leader does the right
things. (Bennis 2009).
Two-Leaders Approach
The dichotomy of leader and manager may be elegantly solved by splitting the tasks
into two complimentary roles: person strongly oriented towards leadership and other
one focused on management excellence. Miller and Watkins argue, that this two-
leaders approach is not only effective, but also meets the social needs in company
structure (Miller and Watkins 2007.). The experience gained by the author of this
book supports this thesis. Thomas et al. brought it to the point: brilliant leadership is
no substitute for strong management; it is a compliment to it (Thomas et al. 2006).
Last (and not least) question to be answered in launching ones own leadership is
Where Are We Going?
The orientation on the future and visioning are cornerstones of the project
leadership (Radcliff 2010; Flannes and Levin 2005; Verma 1996). Big Picture
acquired at the beginning of the launching serves leader to develop and articulate
the right project vision (Flannes and Levin 2005). Right project vision is directed
towards goal achievement and takes the intelligence of Big Picture into account.
The resulting strategy is optimized not only with respect to the project goals and
acquired recognitions, but take into account individual preferences regarding the
leadership style, abilities and life experience of the project manager (Verma 1996).
It is the task of the leader to set the goals and to cascade them within the project
team, once the strategy is set (Kinicki et al. 2011/2013; Nash 2004). Even the most
contagious goals will be followed only if compelling reasons for team members will
be formulated by the leader (Verma 1996).
With Big Picture, Intelligence, Vision, Strategy and Goals formulation the next
stage of Leadership process may be approached.
06:23 Engage
Engagement
Project team members occupy roles and bring varying degree of their selves,
physically, cognitively and emotionally, remaining within integral borders of who
they are and the role (Kahn 1990). The term engagement was coined by the
Gallup Organization following their research in workforce behaviour (Buckingham
and Coffman 1999) and only later extended with emotional component. The
research of Shondrick at al. (Shondrick et al. 2010) indicates, that the last, with
root in short episodic memory, is more meaningful to the leader perception and
Positive Views Feelings of energy, Extra-role

of Life&Work absorption behaviour
Proactive Personality Satisfaction Org. Citizen. Behaviour
Autotelic Personality (Affecitve) Proactive/Pers. Initiative
Trait Positive Affect Involvement Role Expansion
Conscientiousness Commitment Adaptive
Empowerment
Trait State Behavioural

Engagement Engagement Engagement
Trust
Work Attributes,
Transformational
Variety,Challenge
Leadership
Autonomy
Fig. 19.3 Engagement process in a project (Macey and Schneider 2008)
engagement than the reasoning elaborated in the semantic human memory. That
means, that leader, by awaking the positive emotions has better chances to engage
team member than working towards the logical argumentation of the engagement.
This emotional part, yet not loosing the grip of reasoning passes from the traits
engagement to personal state engagement to be catalyzed by the leader as final
behavioral engagement, where team member fully contributes towards project
goals. Figure 19.3 shows these relations following Macey and Schneider (2008).
The state and then the behavioral engagements are best achieved, if the holistic
leadership, which bases on the interaction between the leader, team members and
the environment, is applied (Best KC 2011/2013).
Holistic Leadership Assumptions

Holistic leadership bases on the following seven assumptions (Best KC 2011/2013):
Successful outcomes result from an orientation toward development.
The healthiest and most productive development is done collaboratively.
The leadership unit shapes the context of collaboration.
The core leadership unit is the individual, which makes every participant a leader
within his or her own sphere of influence.
The intrinsic desire for meaningful purpose suggests that every individual wants
to realize his or her best potential.
Holistically led collaboration requires that the participants right to self-
determination be respected.
The exercise of self-determination in a way that realizes the individuals best
potential, results from an iterative process that must be supported.
06:20 Methods 407
This holistic approach is partially implemented also in dyadic and team oriented
concepts (team or shared leadership (Pearce and Conger 2003; Carson et al. 2007)).
The leader, who is furnished with the legitimate power, is facilitator, proactively
securing the necessary resources (Flannes and Levin 2005; Verma 1996) and the
social architect of the environmental climate in a project (Verma 1996).
He inspires the team and evokes the team confidence and trust (Nash 2004). In
this capacity leader empowers his team. Team members, who participate in the
decision making develop higher performance (Avolio et al. 2004).
Omoto et al. view motivation as an antecedent of the personal engagement
(Omoto et al. 2010) Project manager can and shall influence the motivation of
team members in his role as a leader (Flannes and Levin 2005).
Leaders Motivation
The research of Seiler et al. conducted in Switzerland, and currently extended to
other countries identified the following key extrinsic project managers and project
team members motivating factors (Seiler et al. 2012):
1. Clear understanding of what to do
2. Working in a trustful environment
3. Working with individuals who have a will to achieve results
4. Having clear project goals
5. Producing identifiable pieces of work
6. Having access to all needed information
7. Having the opportunity to contribute to decisions
8. Having the opportunity to use own skills and abilities
9. Seeing progress in current projects
10. Being part of a cohesive, supportive team.
The above results confirm the considerations in this chapter. Leader can influ-
ence positively the psychological engagement by focusing on emotions, building up
the cohesive, supportive team, by creating the outright, trustful atmosphere, chal-
lenging tasks and by the empowerment of the team members. He can turn on the
management engagement by securing the organisational provisions for effective
work contribution and necessary resources to perform the job.
06:24 Act
Leadership is action not position; quote attributed to Donald H. McGannon, who

ran the Westinghouse Broadcasting Corporation and served as President of the
National Urban League, pointedly render the merit of leadership. (among others
Adair 2007).
The five base powers (section 06:22 Launch above) may make someone a
good manager, but only through acting he may become a leader.
To act means to get engaged in continuous exchange with the project team
environment and with the team members.
(Environment) Adaptive (Positive) Feedback

Modifies Goals, Decisions & Actions
Perfor- Compare Elaborate Leadership

mance
Monitoring with Goal Decisions Action
System Mechanics
(Environment) Control (Negative) Feedback

Subordinates Behaviour, Attitudes & performance
Fig. 19.4 Cybernetic model of leadership (Kinicki et al. 2011/2013)
Cybernetic Model of Leadership

The spirit of the holistic leadership is best reflected by a cybernetic model of
leadership (Kinicki et al. 2011/2013)
In this model the team member (subordinate) behaviors are feedbacks to the
leadership action. The reflecting awareness (Lee and Roberts 2010) allows for analysis
and interpretation leading to the corrective actions which close the cybernetic loop
(see Fig. 19.4). The situational (environmental) variables impact the goals and
expectations as well as the feedbacks of the team members. Recalling the values as
the origin of goals and expectations we obtain the model of self management of the
leader, shown in Fig. 19.2 section 04:22 System of Personal Values above.
The particular interrelationship, which emerge between the leader and team
member (LMX : Leader-Member-Exchange, (Gruaen and Uhl-Bien 1995)) is related
to individual leaders style orientation, preferences, his abilities and life experience.
Blake and Mouton Managerial Grid

An impact of leaders orientation towards people, primarily the team, and towards
project objectives has been analysed by Blake and Mouton (1968). They conceived
a two-dimensional matrix scaled between 1 (lowest) and 9 (highest), named mana-
gerial grid as shown in Fig. 19.5. Blake and Mouton evaluated 716 managers of one
organization and demonstrated that the career accomplishment is related to mana-
gerial concern: Most successful were managers with high concern for production
(corresponds to project objectives) and for people (9,9); eventually production first
(9,1), (Kalin and Kung 2008; Bock 2007). The predictive value of this Instrument
points at the desired androgynous leaders approach as shown in Fig. 19.5.
Egograms of Personalities in Managerial Grid

The individual management concerns can be only in part consciously controlled.
The individual attitude, expressed in egograms of transactional analysis (section
04:34 Assessment of Personal Psychical Energy Focus) predetermines our most
likely concern (Fig. 19.6) (Bock 2007).
06:20 Methods 409
maximum concern adequate encourages

for friendly working production and teamwork and
conditions and satisfactory mutual respect,
minimum production morale learns from
emphasis mistakes, has a
sense of directed
commitment, and
High 1,9 9,9 does not use
facades
desired
approach
Concern for people
5,5
major production
emphasis and
minimum human
considerations
1,1 9,1
Low
Concern for production High
minimum
concern
for production
and people
Fig. 19.5 Blake and Mouton managerial grid with desired approach (Bock 2007; Kalin and Kung
2008)
High 1,9 9,9

Concern for people
5,5
CPSP A NC AC
1,1 9,1
Fig. 19.6 Egograms of Low

personalities in managerial Concern for production High
grid (Bock 2007) CP, SP,A, NC, AC: see Chapter 04:34
Hersey and Blanchard (Hersey et al. 2007) developed a three dimensional leader
effectiveness model, in which behavior of a leader is determined the task and by the
team members attitude. Originally both authors defined the team member attitude
as the follower maturity, given by the ability to set ambitious yet achievable goals,
ability and willingness to take the responsibility and the necessary knowledge and
Team member Levels

Maturity (M)/Development (D)
M4/D4 M3/D3 M2/D2 M1/D1
High abilities Low abilities
High Commitment High
High Commitment
Participating Selling
Style Style
Share Explain
Relationship Behaviour
Ideas Decisions
S3 S2 Leaders
S4 S1 Behaviour
Delegating Telling
Style Style
Turn over Give
Decisions Instructions
Low
Task Behaviour High
Fig. 19.7 Situational leadership styles of Hersey and Blanchard (Hersey and Blanchard 1977, 1982)
experience (Hersey and Blanchard 1977, 1982). In the later concepts the maturity
gave place to the development levels.
Depending on the team development stage leader migrates between the task and
relationship orientation (see Fig. 19.7).
The Leader in a new team with less commitment and abilities shall start with
authoritarian style S1: defining the roles of telling who, what, how, when, and where.
With the team abilities development (and according to Hersey and Blanchard
willingness drop down) we can proceed to integrative style S2: in a two-way
communication trying to explain the decisions. Positive further team development
allows team to decide how the task is going to be done, while the leader focuses on
relationship (Style S3). Finally with high competences and high motivation to
perform team can decide without the leader. The last do some monitoring only
(Delegating Style S4).
Blake and Mouton Versus Hersey and Blanchard Models

As in the Blake and Mouton model the best leader is ambiguously task and people
oriented, in Hersey and Blanchard model leader exercise situational style, which
varies depending on the team members maturity (development) level.
Lewin, Lippitt and White Behavioural Model

Lewin, Lippitt and White developed the behavioral model of three approaches of
leader towards his team members: authoritarian approach (which corresponds with
Hersey and Blanchard S1), democratic (combines both S2 and S3) and the Laissez-
faire behavior (let do) which corresponds to S4 (Lewin et al. 1939) The relevance of
06:20 Methods 411
the Lewin, Lippitt and White research is their proof of mutual impact of team an
aggressive behavior of the individual (reaction to the authoritarian style).
US Army Leaderhsips Models

We distinguish few other leadership styles. US Army Leadership Field Manual
bounds the leader centred leadership to the directing (authoritarian style) as oppo-
site to the team-oriented leadership, where team empowerment leads to great
satisfaction but lower perception of a leader as a competent worker (US Army,
The Center for Army Leadership 2004). Whereas the army follows the Hersey and
Blanchard model, they introduce also the two other styles: transformational
(focuses on inspiration and change) and transactional (rewards and punishment)
arguing that good leader shall migrate between these two as the situation demands,
too. The notion of change is base for the change culture (N3) considered by Nash as
one of the key success factors in projects (NASH 2004). As changes are immanent
to the projects it is crucial for the project team to anticipate the changes and handle
them efficiently. Leader shall make it happens.
06:25 Deliver
Project manager most of all is doomed to deliver. He is responsible for the results
and he is equipped with powers needed to achieve the results. Three aspects
dominate this stage:
Sense making in problem and risk management
Stakeholder management
Social responsibility for replicating himself, coaching and mentoring of team
members
We recall that project management is considered in the book as being composed
of several processes (see Chapter Introduction above). Management according to
Kaplan is the optimization of the processes and their effectiveness (Kaplan and
Norton 1996). This is relatively predictable and well known procedure. Projects
themselves by definition are unique, at least partially unpredictable, creating vari-
ous unexpected problems. The problem solving comprising the idea search and
evaluation obliges leader (Cragan et al. 2009; Shondrick et al. 2010).
Unique character of a project causes the discontinuity and natural changes. Project
managers have to work at the edge of chaos. Within the shortest time they are
expected to handle complex issues with high degree of uncertainty (see Fig. 19.8).
Linear and Non-linear Systems

As projects are driven by humans even the simplest tasks become complex manage-
ment issues. Add time constrains to these and stress situation is inevitable. In cybernetic
model of leadership presented above (section 06:24 Act above) the relationships are
depicted in part by linear and non-linear systems. Singh and Singh (Singh and Singh
2002) view project managers as permanently balancing between linear (management)
systems and non-linear systems, effective in chaos and complexity management.
Least Desirable
Situation
Most Desirable
Situation
Complexity
Uncertainty
Time Available
Fig. 19.8 Leader decision making drivers (NATO RTO Technical Report TR-081 2004)
Complexity
Managerial
approach
Leaders
approach
Fig. 19.9 Complexity
adapted from (Gell-Mann
1994) Order Disorder
Managers see the system as linear one and try to master the negative feedback
loop (e.g. by increasing the frequency of project progress control) imposing order.
(see Fig. 19.9).
The leaders, oriented towards dealing with the uncertainty of nonlinear systems,
focus on positive feedback. They let the system to certain degree freely floating or
even intentionally destabilizing, to learn the equilibriums and the resistance to
change around those points. The adaptive learning let leaders to develop the
cognitive intuition (Bousquet 2009). This operation on the verge of chaos is viewed
by several authors as the most successful strategy to deal with the non-linear
systems (Bousquet 2009; Kaufmann 1955; Singh and Singh 2002).
To handle the last, an awareness of context and relations, even anticipation of
their possibility, may be crucial to project success. Linear systems focus on
quantitative analysis and project controls limiting the capability of the perception
of deviations or stochastic occurrences with impact on the project fate, what may
also explain, why todays project are not better managed than 10 and 20 years ago.
Also stress situations, typical in any project day life, focus our approach on
problem solving rather than on systematic development of understanding,
06:20 Methods 413
Fig. 19.10 Sense making

intelligence SQ Thomas and
Mengel (Thomas and Mengel SQ
2008)
Uncertainty
Leader
Project
Manager
Profile
Expert Manager
IQ Complexity EQ
alternatives evaluations, and risk analysis. We handle mostly instantly and sponta-
neously, without questioning assumptions or implications of our action.
This reaction comes from our sense making capability in view of non-linear
system encounter.
Sense Making Intelligence

Thomas and Mengel (Thomas and Mengel 2008) introduce the concept of Sence
making Intelligence SQ demanded in systemic solution of what appears to be chaos
(leading to uncertainty) creating non-linear systems there. SQ can not be reached
without both Intellectual intelligence IQ defining someone as an expert and Emotional
intelligence EQ which makes the manager out of an expert (Fig. 19.10). The cognitive
capabilities (IQ) support the self-awareness. Goleman (1997) sees the self-awareness
as a cornerstone of the emotional intelligence (EQ). EQ is responsible for self-
compassion and compassion and empathy for others. Both self-awareness and self-
compassion are necessary for self-regulation (Silverthorne 2010).
It is finally the sense making intelligence SQ which builds on both IQ and EQ
and which in authors view is a necessary condition for leader the ability
demanded in project management.
The second part of delivering is handling the stakeholders of immediate (upper
management) and indirect (politics) impact on the project (Verma 1996;
Leatherman 2008). It is the decision making and steering of all other project
management processes, most of all communication, towards successful influencing
of these target groups.
Team Coaching and Mentoring

Final responsibility of project manager in his deliver leadership is coaching of team
members. By replicating himself, coaching others towards personal development,
mentoring, where support is needed, securing stewardship through personal values,
project leader shows his excepted maturity and social orientation (Leatherman
2008; Flannes and Levin 2005).
Leadership BSC
In conclusion we have the four perspectives of Balanced Scorecard approach in
Leadership: The customer perspective (team members and stakeholders), financial
perspective (project limitations), process perspective (optimal leadership processes)
and development perspective (personal self-reflection).
Statistics Solutions quote ten various instruments which may be applied to evaluate
someones Leadership qualities. Few selected, most widely used, are presented in
this chapter (Statistic Solutions 2013).
06:31 Leadership Practices Inventory
LPI Leaderhip Practices Inventory

Kouzes and Posner developed comprehensive Leadership Practices Inventory LPI
(Kouzes and Posner 2008). The LPI 360 is composed of two parts:
LPI self: an individual self-assessment of a leader along 30 questions with the
results indicated on the 10-points frequency scale (1 almost never, 10
almost always).
LPI Observer: also 30 items assessment of five to ten subordinates and superiors
of the leader, providing an experience shared by them in relation to the leader
under evaluation.
The 30 items covers five practices:
Model the way
Inspire a Shared Vision
Challenge the Process
Enable Others to Act
Encourage the Heart.
The Criteria allow to evaluate the leadership process in a project. They are listed
in section 06:42 Documentation of the Project Results as an example of the
project results.
06:32 Multifactor Leadership Questionnaire
Bass and Avolio Multifactor Leadership Questionnaire

Bass and Avolio developed a 45 item short and 63 items long instrument based on
transformational/transactional leadership framework (Bass BM, Avolio BJ 2013).
Their tool assesses the capabilities of the leader and the effectiveness of the
behavior related to the individual success and the success of the organization.
The survey contains nine factors revised from the original six factor model and
five points Likert type scale.
Contingent Reward
Intellectual Stimulation
Management-by-exception (passive)
Management-by-exception (active)
Laissez-faire leadership
Idealized Influence (behavior)
Idealized Influence (attributed)
Inspirational Motivation
Individual consideration
Much to the regret of the author the full questionnaire can not be published. It
may be individually purchased only; therefore no reference is further given here.
06:33 Motivational Factor Inventory
MFI, Seiler, Lent, Pinkowska, Pinazza

The Seiler, Lent, Pinkowska and Pinazza Motivational Factor Inventory (MFI) of
47 items distinguishes six dimensions:
Interpersonal Interaction
Task
General Working Conditions
Empowerment
Personal Development
Compensation
Tables 19.3, 19.4, 19.5, 19.6, 19.7, and 19.8 give the factors according to Seiler
et al. (Seiler et al. 2012). The evaluation follows along the six levels Likert type
scale both for the personal perception as well as presently encountered experience
in the company.
The survey conducted by the authors in Switzerland among the ICT project
managers and project team members indicated, that an interesting task, a cohesive,
goal oriented team, receiving the necessary resources, and the possibility to influ-
ence important decisions are the most important motivators (Seiler et al. 2012).
06:34 ACE Self-Reflection
Lee and Roberts Leader ACE Record

Lee and Roberts see authentic leadership in the quality of consciousness and the
level of reflective and integrative awareness, which shape the sense making intelli-
gence of a leader (Lee and Roberts 2010). Leader self-reflection is supported by
ACE: Action-Cognition-Emotion recognition. An example of ACE record is given
in Table 19.9 (Lee and Roberts 2010).
Table 19.3 The interpersonal interaction factors, dimension interpersonal interactions, (Seiler
et al. 2012)
Dimension interpersonal
No. interactions Motivational factor
1 Interpersonal interaction Working with enthusiastic people
2 with team Working with individuals who have a will to achieve results
3 Being part of a cohesive and supportive team
4 Working in a team capable to handle also difficult situations
5 Sharing common project goals within the team
6 Interpersonal interaction Having a good relationship with my superior
7 with superior Having superiors who are open towards changes
8 Being free from destructive/disruptive supervision
9 Being hold accountable for my work in a fair way
10 Experiencing support and encouragement in professional
aspects
11 Interpersonal interaction, Experiencing mutual support between project managers and
general aspects line managers in my organization
12 Experiencing good communication flow
13 Experiencing loyalty (in all relations)
14 Working in an trustful environment
15 Obtaining recognition for my work efforts
16 Having direct client contact
17 Being respected as a professional
Table 19.4 The interpersonal interaction factors dimension task (Seiler et al. 2012)
No. Dimension task Motivational factor
1 Congruence of the task with occupational aptitude Working on important tasks
2 and disposition Having the opportunity to use own skills
and abilities
3 Having a variety of work
4 Contributing to society at large
5 Clear tasks, goals and results Seeing progress in current project
6 Producing identifiable pieces of work
7 Clear understanding of what to do
8 Having clear project goals
06:35 Mindfulness
Mindfulness
Kabat-Zinn, the pioneer of Mindfulness, defines mindfulness as paying attention
in a particular way: on purpose, in the present moment and non-judgmentally
(Kabat-Zinn 1994). William W. George port it to leadership as a state of being fully
present, aware of oneself and other people, and sensitive to ones reactions to
stressful situations.
Table 19.5 The interpersonal interaction factors dimension general working conditions (Seiler
et al. 2012)
Dimension general working
No. conditions Motivational factor
1 Resources Getting the necessary financial resources to complete the task
2 Getting the necessary personnel resources
3 Having access to all needed information
4 Having the companies support for the right balance between
workload and private life
5 Working environment Having a state of the art working environment
6 Having an adequate working place (office, space)
7 Job security Having a secure job
8 Having stable, long-term employment
9 Processes Having adequate administrative processes
10 Having adequate organizational rules and policies
Table 19.6 The interpersonal interaction factors dimension empowerment (Seiler et al. 2012)
Dimension
No. empowerment Motivational factor
1 Having the opportunity to contribute to decisions
2 Having the authority to make important decisions
3 Having the opportunity to influence the departments or
organizations actions
4 Having the opportunity to influence roles and staffing of my project
team
Table 19.7 The interpersonal interaction factors dimension personal development (Seiler et al.
2012)
No. Dimension personal development Motivational factor
1 Congruence of the task with occupational Having the opportunity for further education
2 aptitude and disposition Having the opportunity for promotion and
career in the organization
3 Having the opportunity to acquire experience
4 Having the opportunity for personal growth
Mindfulness Based Interventions

The mindfulness based interventions (MBI) originally used in stress reduction
(MBSR) offers tools and techniques of waking up an awareness to phenomena
related to the four foundations of mindfulness (Maha Sattipatthana Sutta: Contem-
plation of the Body, Contemplation of the Feelings, the Contemplation of the
Consciousness and the Contemplation of the dhammas mental condition of
sense evaluation and desire (Cullen 2013; Silananda 2002/2012)). This reflective
Table 19.8 The interpersonal interaction factors dimension compensation (Seiler et al. 2012)
No. Dimension compensation Motivational factor
1 Having a performance-based total compensation
2 Getting materialistic rewards above expectations
3 Having an adequate total compensation
4 Getting non-materialistic rewards
Table 19.9 ACE record example (Lee and Roberts 2010)

ACE record example
Intension: Result:
What do you wish to achieve? What is the current outcome?
To develop a more productive Confrontations and then distance
working relationship with Charles
Limiting Enabling
Actions: Cool, steady, Choosing when to talk to others
logical
What behaviours do you use in Dismissive Finding common ground
relation to this intention? statements
Point scoring Inquiring rather than solving
Rapid, cursory, Lighter, more spacious and nuanced
rifle-fire speech speech
Cognitions: They dont respect They value my knowledge
me (anticipating
rejection)
What thoughts, attitudes and beliefs Ill show them I am good at finding solutions
about yourself or others do you have Black-and-white Its interesting to notice my
in relation to this intension? thinking impulses and reactions and to
wonder about those of others
Emotions: Anger and Desire to have an impact
resentment
What feelings about yourself or Longing to be Enjoying a sense of perspective
others do you have in relation to this valued
intention?
Effectiveness:
To what extent is this ACE pattern successful? (What is the gap between intentions and results?)
The Limiting ACE approach is causing a rift with Charles, and undermining the
interdepartmental relationship
Changes:
What changes do you need to make to achieve your intended results more effectively? Consider
changes in actions, cognitions, and emotions
Make time for mindfulness practice to get more perspective on cognitions and emotions in self and
others
Enact the Enabling actions
dimension can not be developed with a single action; rather a series of mindfulness
trainings, focusing, meditation techniques, mental trainings and imagination
techniques are needed. An example of reflective meta-model of Leadership, named
Azonic Leadership, has been published by Liska, Ster and Schulte (Liska et al. 2011).
06:40 Templates
One of the challenges of current project management is leadership in virtual teams.

An assessment scheme is given in Table 19.10.
Pauleen suggested preparation of the collaboration in three steps (Pauleen 2004):
Assessing the current situation
Defining the target Level of Relationship
Creating the (implementation) strategy.
The extended approach comprising the issues relevant in the Launch Stage of
Leadership is given in Tables: Table 19.10 (Assessment), Table 19.11 (Target
Level) and Table 19.12 (Strategy).
The evaluation along the Leadership Practices Inventory LPI (section 06:31
Leadership Practices Inventory above) allows for the evaluation of the leaders
performance in each practice and a comparison to average. Table 19.13 shows the
items and their practice allocation.

Tasks
Launch the leadership
Develop holistic leadership approach
Engage the team members
Results
The Big Picture and powers identified
Leadership strategy elaborated
Team members aligned
Table 19.10 Assessment in virtual team leadership launching stage

Launch leadership team member . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . ...
Hub (in-between leader) . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . ...
1. Assessment of current situation
No Criterion Fulfilment
Big picture
1 Project goal/his goal
2 Team member characteristics
2.1 MBTI personality
2.2 Belbin personality
2.3 Relevant experience
2.4 Skills
2.5 Background
2.6 Values
2.7 Personal motivators
3 Organizational boundary Xing
3.1 Organizational and diplomacy difficulties
3.2 HR policy difficulties
3.3 Economical barriers
3.4 ICT Policy difficulties
3.5 Security policy difficulties
3.6 KM policy difficulties
4 Human boundary Xing
4.1 Cultural boundaries
4.2 Trust & credibility
4.3 Time zone differences
4.4 Preferred contact time
4.5 Preferred communication style
4.6 Preferred technology in communication
5 Technological boundary Xing
5.1 Available communication technology
5.2. Comm technology policy difficulties
Powers
6 Available Powers (R/C/L/R/E)

Tasks
Strategy revision
Positioning of Manager and Leader activities
Cybernetic model of leadership developed
Leadership style consciously selected
First ACE self-reflection mindfulness exercises
Table 19.11 Target level in virtual team leadership launching stage

Launch leadership team member . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . cont.
Hub (in-between leader) . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .
2. Target level of relationship
No Criterion Fulfilment
High
7 Task
7.1 Is the project task complex?
8 Boundaries
8.1 Are several boundaries crossed?
9 Trust
9.1 Is there potential to develop trust?
Medium
10 Effective understanding
10.1 Is there potential to share private infos?
10.2 Can individual needs of both be met?
Low
11 Minimum understanding
11.1 Are all contact data known?
11.2 Does the bidirectional comm work?
Table 19.12 Strategy in virtual team leadership launching stage

Launch leadership team member . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . cont.
Hub (in-between leader) . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .
3. Strategy creation
No. Criterion Fulfilment
Developing vision
12 My vision of collaboration
12.1. Which vision suits my targets?
Developing virtual relationships
13 Communication channels:
Purposefulness/when/results
13.1 Face-to-face
13.2 Written paper communication
13.3 Telephone
13.4 E-mails
13.5 Social platforms
14 Messages
14.1 Which messages face-to-face?
14.2 Which messages through other forms?
Feedback
15 Collecting and evaluating feedbacks
15.1 My feedback to the team member?
15.2 Team member feedback to me?
Table 19.13 The LPI reconstructed from sample profile copyright 2004 by James M. Kouzes and
Barry Z.Posner. (Kouzes and Posner 2013)
Self Others
Nr Item Practice 110 110
1 SLets a personal example of what is expected Model
2 Talks about future trends influencing our work Inspire
3 Seeks challenging opportunities to test skills Challenge
4 Develops cooperative relationships Enable
5 Praises people for a job well done Encourage
6 Makes certain that people adhere to agreed-on standards Model
7 Describes a compelling image of the future Inspire
8 Challenges people to try new approaches Challenge
9 Actively listens to diverse points of view Enable
10 Expresses confidence in peoples abilities Encourage
11 Follows through on promises and commitments Model
12 Appeals to others to share dream of the future Inspire
13 Searches outside organization for innovative ways to Challenge
impr.
14 Treats people with dignity and respect Enable
15 Creatively rewards people for their contributions Encourage
16 Asks for feedback on how his actions affect peoples Model
perf.
17 Shows others how their interests can be realized Inspire
18 Asks What can we learn? Challenge
19 Supports decisions other people make Enable
20 Recognizes people for commitment to shared values Encourage
21 Builds consensus around organizations values Model
22 Paints big picture of group aspirations Inspire
23 Makes certain that goals, plans, and milestones are set Challenge
24 Gives people choice about how to do their work Enable
25 Finds ways to celebrate accomplishments Encourage
26 Is clear about his/her philosophy of leadership Model
27 Speaks with conviction about meaning of work Inspire
28 Experiments and takes risks Challenge
29 Ensures that people grow in their jobs Enable
30 Gives team members appreciation and support Encourage
Results
Leadership strategy revised
Manager and Leader activities identified
Leadership style selected
First ACE Rapport elaborated
Cybernetic model of leadership elaborated
Bibliography 423
Tasks
Acting along selected strategy, actions, leadership style
Closed loop control of cybernetic leadership loop
At least one ACE self-reflection performed
Results
Team performing fully motivated
At least one ACE Rapport elaborated
Tasks
Sense Making Intelligence developed
Least desired decisions taken in due time
Final delivery of project results secured
Team member oriented development
Formulation of lessons learned for future personal peruse
Results
All necessary decision and actions taken to deliver
Final conclusions on purposefulness of undertaken actions
Results of the BSC evaluation of own leadership
Personal lessons learned formulated
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instruments. Accessed 15 Feb 2013
Thomas J, Mengel T (2008) Preparing project managers to deal with complexity advanced
project management education. Int J Project Manage 26(3)
Thomas M, Miles G, Fisk P (2006) The complete CEO: the executives guide to consistent peak
performance. Capstone Publishing Limited (a Wiley Company), Chichester
Verma VK (1996) Human resource skills for the project manager, vol 2. PMI, Newtown Square
Vroom VH, Jago AG (1988) The new leadership: managing participation in organizations.
Walumbwa FO, Wang P, Wang H, Schaubroeck J, Avolio BJ (2010) Psychological processes
linking authentic leadership to follower behaviours. Leadersh Q 21(5), Oct 2010, Elsevier,
London
Wong Z (2007) Human factors in project management: concepts, tools and techniques for
inspiring teamwork and motivation. Wiley, San Francisco
Index
A Check-up, 115, 145

ABC analysis, 167, 169, 175, 191192, 202 Checklists, 115, 125, 172, 183, 189, 237, 238,
Actual costs, 120, 138 240, 263, 310, 311
Additional remarks, 171 Classification of conflict source, 318
Agile model, 29, 32, 33, 40 CMMI. See Capability maturity model
Analysis integration (CMMI)
of cost-consumption ratio, 131132, 202 Cohesion, 26, 295, 304306, 313, 370
of needs, 287 Collectivism, 306
Apollo syndrom, 277278 Competition Phase, 320
Assessment Complex project, 8, 71, 99, 119, 133, 150,
of actual project costs, 116 338, 371
of knowledge and experience, 287 Conflict
of results, 115, 146, 175, 291 approach (conflict solution), 300, 315,
of the alternatives, 174 316, 320323, 327329, 331335,
of time and deadline course, 115116 349, 354
Audit, 152153 definition, 316317
Azonic leadership, 419 dimension, 323, 324
dynamics, 319
impact, 319320
B indices, 316317, 328, 334
Bass and avolio multifactor, 414415 model (Glasl), 319
Benchmarking, 155156 potential source, 318319, 329
Best value, 94 prevention, 318, 324, 328329, 334
Beta process, 40, 42, 202 reasons, 324325, 331
Big picture, 351, 400, 403, 405, 419, recognition, 316, 333
420, 422 signs (of a conflict), 316
Blake and mouton managerial grid, 408, 409 solution procedure, 323326
Brainstorming, 23, 3738, 76, 150, 155, 172, symptoms, 315, 328
188, 354 Confrontation strategy, 321, 333
Buddy-system, 309 Constructive dispute, 328, 332, 354
Cooperation strategy, 321, 322
C Cost driven management, 130, 187
Capability maturity model integration Critical deliberation, 123
(CMMI), 145146 Critical factor, 121122, 137
Cause-effect diagram, 125 Critical path, 25, 30, 31, 184
Certification, 151152, 156, 160, 287 CU-Factor, 306
Change capability, 145 Culture adjustments, 305307, 348
Change management process, 112, 154, 198, Cutting time, 114
199, 201, 202, 204, 205 Cybernetic model, 68, 402, 408, 411,
Chats, 169, 170, 353, 376, 387 420, 422

DOI 10.1007/978-3-642-32504-5, # Springer-Verlag Berlin Heidelberg 2013
428 Index
D Human Resource Management (HRM), 9, 11,

Data bases, 172, 202, 215, 220, 226, 234235, 136, 164, 210, 227, 255, 273292, 295,
282, 346 297, 300302, 306, 319, 324, 328, 337,
Delivering quality, 148 346, 350, 353, 361, 367
Delphi procedure, 43, 103, 118119, 173 Human Resource System, 276
Demographical data, 171
Diagram of relationship of network elements,
154155, 161 I
Documentation (interview, chat), 170 Ice breaker (initial set of questions), 171
Individualism, 306
Integration
E events, 309310
Earned Value measures, 308310
analysis, 117, 119121, 131, 173, 202 process, 207, 208, 210, 211, 213, 216219
management, 7, 10, 101, 111141, 150, Internal recruiting, 289
151, 153, 187, 189, 235, 255, 263, Interview, 154, 169, 170, 189, 193, 217, 263,
264, 302 264, 276, 287, 290, 338
Emertxe projects, 79 ISO/DIS 21500:2001, 6062
Engagement, 4, 45, 47, 49, 170, 210, 233, 265,
303, 370, 399, 404407
Equilibrium, 6, 320, 322, 412 J
Error search, 124, 125 Johari window, 300, 307308
F K
Feedback, 6, 7, 12, 216, 260, 266, 287, 328, Kick-off meeting, 308
330332, 340, 342, 350, 358359, Kiviath graphs, 288
366, 374, 384, 408, 412, 421, 422 Knowledge Management, 11, 60, 82, 145, 159,
Financial accounts, 118, 130 161, 179, 195, 215, 223242, 248, 267,
Financial break-even, 91 273, 295, 335, 337, 341, 352, 363, 394,
Financial commitments, 118 395, 399, 420423
Flow channel, 280, 281
Forming phase, 300, 307, 308, 310, 311
Functional Value Analysis (FVA) L
balance of FVA criteria, 173 Leaders motivation, 407
calculation, 174 Leadership
criteria, 173 BSC, 414
metrics, 174 practices inventory, 414, 419
results, 175 style, 399401, 405, 410, 411, 420, 422
sensibility analysis, 174 Lean Six Sigma, 146, 151
Lewin, Lippitt and White Behavioural Model,
410411
G Linear and non-linear systems, 399, 411413
Gantt time diagram, 4243
Golden rule, 329331
M
Magic triangle, 116, 118, 134, 168
H Main set of questions, 171
Harvard Project, 331 Management process, 57, 5960, 82, 87,
Holistic leadership assumptions, 406407 100, 101, 112, 117, 136, 137, 144,
HRM. See Human Resource Management 145, 151, 159, 164, 165, 180, 181,
(HRM) 208, 209, 217, 227, 244, 259, 275,
Human capital, 275, 285 288, 296, 317, 333335
Index 429
Managment by critical factor, 121122 Planning & Scheduling (P&S), 6, 9, 10, 12,
Maslow pyramid, 278 1753, 61, 62, 70, 89, 91, 112, 114, 115,
Max Scheler value systems, 279 118, 125, 131, 145, 147, 150, 155, 172,
MBTI leadership potential, 277 173, 175, 187, 199, 200, 210, 213, 214,
Meredith Belbin, 282 227, 235, 257, 263, 264, 285, 286, 298,
Metaplan, 308, 353 308, 328, 353, 370, 402
Metaplantechnik, 286 Planning & Scheduling proces set, 112
Milestone trend analysis (MTA), 115, 125130 Preliminary letter, 171
Mind Mapping, 173 Problem management process, 164, 165
Mindfulness, 416, 420 Problem Solving Procedure (figure)
Minimum Loss Rule-Maximum Profit Rule, description of actual and target situation, 166
135, 136 description of differences and results, 167
Model drawing up solutions and their assessment, 167
of Hersey and Blanchard, 401, 409, 410 identification of a problem, 166
of leadership LEAD, 402 identification of potential causes of the
Moral behavior, 279, 369 differences, 167
Motivation, 2, 12, 28, 36, 50, 69, 74, 75, 79, identification of the main cause, 163, 167
134, 151, 157, 173, 185, 210, 229, 231, solutions realization, 167
233, 260, 264, 273, 279, 280, 290, 295, Process evaluation, 149, 297
308, 311, 324, 365368, 370372, Procurement
378379, 393, 394, 407, 410, 415 management, 85108
MTA. See Milestone trend analysis (MTA) management team, 94, 100
Profitability analysis, 175
Project
N activities, 3, 17, 24, 33, 60, 70, 77, 201
Negative impact potential, 302 assessment, 156, 261
Negotiations, 78, 93, 97, 100, 105, 287, 324, coach, 62, 7375
328, 331333, 347, 354 costs, 34, 36, 43, 116, 118, 131, 133,
Norming phase, 300301 138, 269
developments, 125, 134, 138, 159
excellence, 20, 154, 156, 258, 260263
O management handbook, 151153,
Organization Management (OM), 9, 10, 27, 236241, 267
5782, 136, 227, 250, 273, 276, 285, management office, 60, 94, 223, 236, 241
300, 301, 337 manager, 4, 8, 9, 17, 43, 45, 50, 52, 57, 60,
Output, 1, 3, 17, 18, 20, 24, 50, 51, 61, 62, 6264, 6669, 71, 7375, 77, 85, 88, 94,
7678, 80, 88, 90, 91, 94, 97, 102, 111, 112, 116, 121, 129, 130, 143, 147,
106108, 113, 122, 219, 358 152155, 169, 172, 184, 207, 212, 229,
237239, 257, 264, 273276, 279, 280,
287, 295, 298, 300, 304, 306, 307, 311,
P 316, 318, 321, 324, 328, 337, 338, 345,
PACTAR, 328, 329, 331, 332, 384 346, 350, 355, 359, 360, 365, 372376,
Payback, 46, 47, 263 389, 391, 399, 400, 403405, 407, 411,
Perfoming phase, 301302 413, 415
Performance estimations, 112 maturity, 73
Performance improvement, 1, 279284, 299, plan, 11, 19, 20, 26, 27, 50, 52, 53, 119,
302305, 312 154, 158, 193, 195, 252, 267
Periodical control, 153154, 160 processes, 3, 10, 24, 114, 145, 334, 335
Personal needs, 273, 278279, 285, 290, 292 progress, 32, 33, 75, 111, 112, 116, 123,
Personal value system, 279, 369, 377 136, 138, 273, 412
Plan procurement, 19, 87, 8999, 107 quality, 20, 146, 151, 158
Planned costs, 112, 117, 119, 120, 131, 133 realisation, 160
430 Index
Project (cont.) SMART-features, 298

results, 10, 11, 17, 20, 21, 50, 80, 105106, Social networks, 38, 88, 297299
115, 125, 141, 143, 160, 176177, 186, Sponsor, 1, 3, 21, 22, 3537, 45, 60, 61, 6669,
199, 205, 206, 208, 210212, 217, 226, 72, 75, 88, 145, 179, 180, 184, 197, 208,
243, 247, 257, 260, 262, 269, 289290, 234, 255, 256, 285, 289, 321, 327, 337,
311313, 333, 334, 345, 354, 360, 391, 345, 361, 362
400, 414, 419, 423 Stakeholder, 2, 3, 9, 17, 21, 51, 52, 5764, 69,
scope, 20, 41, 111114, 117, 122, 130, 137, 70, 75, 77, 8082, 85, 86, 88, 111, 112,
143, 145, 150, 154, 155, 157, 159, 163, 143145, 216, 234, 262, 274, 315, 321,
167, 173 337, 340, 345, 361, 362, 365, 366, 399,
scope objectives, 112114, 116, 117 400, 411, 413, 414
simulator, 134, 135 Stakeholder strategy, 21, 63
team, 5, 11, 12, 23, 60, 62, 66, 68, 70, Storming phase, 300, 302, 328
7279, 81, 115, 117119, 124, 143, 144, Supplier relationship, 149
152, 153, 155, 157, 163, 166, 169, 173, Survey, 45, 118, 170, 171, 189, 262, 264, 279,
174, 176, 205, 206, 211, 223, 226229, 368, 377379, 415
233, 236, 241, 243, 247250, 252, 264,
265, 274, 276, 278, 280, 282, 284, 291,
297, 300, 304, 308, 309, 311, 316, 318, T
327, 328, 331, 338, 340342, 345, 354, Target values, 17, 2023, 51, 88, 90, 113, 255,
402, 403, 405, 407, 411, 415, 417 257, 268
Taylor scientific management, 64
Team
Q for sale, 312, 313
QM process, 144, 145, 217, 255, 259, 297 assessment, 123124, 155
Quality coaching, 413
assurance, 115, 145148, 150, 157160 comunication rules, 300
assurance plan, 150, 157159 culture, 66, 69, 75, 305307, 348
control, 143, 145, 147, 150, 151, 158, 160 efficiency, 299, 304305
goal, 150, 157, 160 integration, 207, 295, 297, 299, 300,
management, 7, 10, 22, 27, 101, 107, 308310, 346
143145, 161, 193, 217, 219, 255, Management, 11, 71, 72, 85, 94, 97, 100,
259, 264 136, 295313
manager, 143, 146, 147 member, 5, 23, 58, 111, 147, 152, 164, 179,
model, 146147, 150, 160 211, 225, 243, 264, 273, 295, 315, 337,
375, 399
performance, 273, 274, 296, 297, 299,
R 301306, 312, 313, 319, 337, 338
Recognizing, 302 Templates, 50, 7980, 104106, 136135, 157,
Record of Thoughts, 38 175176, 178, 192194, 201204, 217,
Recruitment and evaluation, 273, 276279, 238240, 249250, 265, 289290,
350, 368 310312, 333, 359360, 391393, 419
Reports, 78, 111, 112, 115, 117, 118, 126, Test of black box, 124
136141, 152, 154, 161, 172, 195, 202, Test of white box, 124
206, 220, 224, 228, 230, 234, 242, 265, The questionnaire, 169
267, 268, 373, 412 The rule of expected values, 136
Respondent, 170, 171 The rule of optimization, 135, 136
Rubicon model, 9, 2829 Theme centered interaction model, 297298
Theory of Fiedler-positions, 401
Time allocated for an interview, 170
S Title page, 171
Select suppliers, 85, 86, 96100 Total Quality Management (TQM), 148,
Sense making intelligence, 413, 423 149, 151
Simulation tools, 133134 Two Factor Theory of Herzberg, 278
Six Sigma, 100, 146, 151 Two leaders approach, 399
Index 431
U WBS. See Work breakdown structure (WBS)

Uniform commercial code (UCC), 104 Work bench, 117118, 130, 131, 189
US Army Leaderships Models, 411 Work breakdown structure (WBS), 17, 23, 24,
29, 36, 40, 51, 52, 64, 69, 77, 208, 245
Workshops (technique of solution), 172173,
V
188189, 215216, 218, 220, 230,
V Modell, 32
308309, 328, 329, 331
Validation
World Trade Organization (WTO), 9294, 97,
process, 51, 115, 147148, 213, 245 99, 104
tool, 134
Wysocki taxonomy, 79
Virtual team, 305, 419421
W Y
War phase, 320 Yung theory MyersBriggs taxonomy
Waterfall model, 29, 30 MBTI, 276

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Bogdan Lent

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ISBN 978-3-642-32503-8 ISBN 978-3-642-32504-5 (eBook)

# Springer-Verlag Berlin Heidelberg 2013

Printed on acid-free paper

Springer is part of Springer Science+Business Media (www.springer.com)

Why This Book?

Addressing the Challenges

Focus on Reality and ISO 21500:2012

A well-balanced project manager becomes a leader. The holistic approach of

Who Should Read This Book?

Supplier and Purchaser Project Managers

methods and techniques. A complete chapter is dedicated to integration and another

Experienced Project Managers

Female Project Managers

Content of This Book

The Introduction provides well-founded definitions, originating where available

The index was elaborated by my international students from Warsaw: Olena

Part I Administrative Processes

2 07:00 Planning & Scheduling: P&S . . . . . . . . . . . . . . . . . . . . . . . . 17

07:50 Activities and Deliverables of Project Phases . . . . . . . . . . . . . . 50

09:22 Plan Procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

6 11:00 Quality Management: QM . . . . . . . . . . . . . . . . . . . . . . . . . . 143

8 13:00 Risk Management: RM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179

10 15:00 Integration Management: IM . . . . . . . . . . . . . . . . . . . . . . . . 207

16:40 Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239

18:25 Kaplan and Norton Balanced Scorecard and the Project

Part II Human Factor

14 20:00 Human Resource Management: HRM . . . . . . . . . . . . . . . . . 273

15 22:00 Team Management: TM . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295

00:50 Activities and Deliverables of Conflict Management Process . . . 333

04:20 Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366

06:42 Documentation of the Project Results . . . . . . . . . . . . . . . . . 419

Projects as singular endeavours, dedicated to the achievement of a specific goal,

B. Lent, Cybernetic Approach to Project Management, 1

orientation through increased motivation contributes to the performance increase

Within the organizational boundary of a project such as e.g. strategy, techno-

What Is the Project Management?

Benefits of Projects Management

A research was carried out in a company in which about 95 projects were

Risks Induced by the Project Management

Project Management Method

A method is a sort of standardized steps which according to Jenny may be defined

Paris defines a management method in project as follows (Paris 1990):

We conclude with the following definition adopted in this book:

Applying certain project management method we use techniques.

The Cybernetics of Project Management

Fig. 1.1 General

Project Management Cybernetic Processes

Sensor Compare Elaborate Actuator

Sensor Compare Elaborate Actuator

Sensor Compare Elaborate Atuator

System Mechanics P&S

Fig. 1.2 Cybernetic model of project management

Implementation and closing are the project management processes, Controlling is

ISO 21500:2012 Process

Sensor Compare Elaborate Actuator

Sensor Compare Elaborate Actuator

Sensor Compare Elaborate Actuator